10 Best Semiconductor Penny Stocks To Invest In Right Now

6. AXT, Inc. (NASDAQ:AXTI)

Price as of March 5: $1.57

Number of Hedge Fund Holders In Q4 2024: 13

AXT, Inc. (NASDAQ:AXTI) is among the leading companies creating the intermediate material used to create chips. The company develops and manufactures high-performance compound and single-element semiconductor substrate wafers.

AXT, Inc. (NASDAQ:AXTI) announced fourth quarter and full year 2024 results recently, and the numbers are rosy. The company experienced tremendous growth last year, with annual revenue reaching $99.4 million, a 31% increase from financial year 2023. There were also significant improvements in financial performance—non-GAAP gross profit jumped 21%, and non-GAAP net loss improved by 40%.

The said improvements didn’t come from thin air. The company has been aggressively pursuing a strategy to improve the quality of its products. According to Morris Young, the CEO:

“Over the last twelve months, we have aggressively advanced the technical specifications of our materials to help our global customer base solve complex, next-generation connectivity challenges. As such, 2024 marked a meaningful year of our revenue growth into the cloud and data center infrastructure market, as well as our successful penetration of the cell phone market.”

The cell phone market represents close to a $100 million addressable market, and the company hasn’t tapped it yet. This represents a massive opportunity for AXT, Inc. (NASDAQ:AXTI) to continue posting record figures. And this is why the stock deserves a spot on this list.