AXTQ 2X Short AXT ETF Surges 15% as AXT Slides 7% After a 147% Run This Year; Coherent Drops 8% David Moadel Fri, November 13, 2026 at 2:03 PM EST 5 min read COHR -6.40% AXTQ +10.19% AXTI -5.33% AAOI -6.81% NVDA -2.24% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
AXTI's 7% slide hands AXTQ a 15% jump, yet the stock still sits 147% higher this year despite record quarterly results.
Coherent and Applied Optoelectronics tumbled 8% and 7% as the AI optical group sold off together, signaling pressure beyond AXT's winners.
Daily resetting makes AXTQ a short-term trade that can punish holders if AXT rebounds, while export and China risks cloud AXT's outlook.
The biggest 401k decisions tend to get made once and never revisited: when to roll it over, what to hold inside it, and when to start taking money out. That is exactly what the report: 401k & IRA Tips and Answers was created to address, and it is free today. Read more here. (Sponsor)
AXT (NASDAQ:AXTI) is giving back part of a huge run this year, and a fund built to profit from that retreat is surging. The Tradr 2X Short AXTI Daily ETF (CBOE:AXTQ) is an inverse fund that rises when AXT falls. It aims for twice the opposite of the stock's daily move and resets every day, so its returns can drift from that multiple over time. The Tradr fund is at $40.31 this afternoon, up 15%.
Shares of AXT are at $40.46, down 7%. AXT stock is still up 147% year to date despite that drop. Over the past 52 weeks, AXT has traded between a low of $8.44 and a high of $143.16, a range that shows how violently the shares have moved.
The pullback in AXT comes during a broad selloff in technology. Meanwhile, the NASDAQ 100 is down 2%, and technology is the weakest sector of the market. Across the sector, tech stocks are struggling as NVIDIA (NASDAQ:NVDA) keeps falling.
AXT's slide fits a pattern of profit taking after an extraordinary run, as AI hardware winners give back gains across the group. Strong fundamentals sit behind that run: on October 29, AXT reported record Q3 2026 results.
For many Americans, funding a 401(k) only leads to more retirement questions. Should you roll your 401k into an IRA, and when? What's the tax impact if the rollover check gets made out to the wrong name? When do required withdrawals begin, and how much do you have to take?
Fisher Investments put the answers in one place. 401k & IRA Tips and Answers is free, and it covers rollovers, contribution limits, required withdrawals, and what actually belongs inside the account once the balance gets serious. Read More Here ›
Revenue at AXT reached $73.41 million, up 162.6% year over year and ahead of the $66 million consensus estimate. On the bottom line, the company's adjusted earnings per share (EPS) of $0.41 exceeded the $0.31 consensus. Demand for indium phosphide (InP) substrates used in AI data center optical connections drove the beat, and AXT's gross margin rose to 56%.
CEO Morris Young said on the earnings call, "Demand remains ahead of supply even as we accelerate the pace of our capacity additions." Young added that AXT had more than quadrupled its indium phosphide revenue opportunity for this year. Wall Street's average price target on AXT is $91.50.
Risks come with AXT's growth, too. The company disclosed that export permits for indium phosphide remain uncertain, that its manufacturing is concentrated in China, and that Chinese private equity investors in its Tongmei subsidiary could request redemptions.
Coherent (NYSE:COHR) stock is at $214.24, down 8%. The fall outpaces AXT's, a sign that selling pressure extends beyond the biggest winners. Year to date, Coherent stock is up 16%, a far smaller run than AXT's.
Applied Optoelectronics (NASDAQ:AAOI) stock is at $49.08, down 7%. The slide leaves Applied Optoelectronics nearly in line with AXT. The AI optical connectivity group, where these three stocks are, is trading lower as a block.
AXT stands at the top of the optical supply chain. Through its Tongmei subsidiary, the company grows indium phosphide, gallium arsenide and germanium wafers at sites in China. Chipmakers turn those substrates into the lasers and detectors inside optical transceivers.
Coherent is vertically integrated, running from crystal growth and its own indium phosphide capacity through lasers, optics and finished transceivers. Applied Optoelectronics builds finished high-speed transceivers for hyperscale data centers and also sells cable television broadband equipment. That structure gives both companies broader product exposure, while AXT's prospects ride heavily on one scarce material.
The AXTQ fund is a pure trading vehicle tied to AXT. Every move in the fund comes from AXT's daily price change, reversed and amplified, so its value depends entirely on the direction of AXT stock.
AXT's next test is whether the stock finds support after this pullback. Bulls point to a record quarter and management's view that InP demand still exceeds supply. On the other side, the bears counter that the stock has already run hard this year and that export permits and China exposure remain open risks.
Leveraged inverse funds like the Tradr fund can move sharply against shareholders if AXT rebounds, and daily resetting can erode returns over longer holding periods. Those mechanics make the AXTQ fund's performance highly sensitive to how long it is held.
(sponsor) 401(k)s are powerful retirement tools. But even savvy savers can make mistakes that quietly cost you money for decades. Choosing the wrong fund, ignoring small fees nobody adds up, rollover steps done in the wrong order, the list goes on.
These sort of mistakes is exactly what 401k & IRA Tips and Answers was created to help prevent. It is a free guide from Fisher Investments on rollovers, contributions, required withdrawals and the mistakes that do the most damage to a retirement account. Learn More Here ›
Contact editorial@247wallst.com for any questions or corrections.
