15 Stocks to Watch With Short Squeeze Potential

Bond yields have the entire stock market on edge. The last thing most investors are thinking about is short squeezes, which means maybe they should be something contrarian trades have on their radar.

Schaeffers Research • Sep 2, 2026

AXT: Correction Has Provided An Opportunity For Speculative Investors - Buy (Rating Upgrade)

Four weeks ago, AXT reported much better-than-expected second-quarter results and provided a strong guidance for Q3. Main Chinese operating subsidiary Tongmei abandoned plans to list on the Shanghai STAR market and is now pursuing a Hong Kong listing. In recent months, increasing hyperscaler capex scrutiny has resulted in a sharp correction of AI infrastructure stocks.

Seeking Alpha • Aug 31, 2026

AXT: AI Driven InP Demand Makes The Valuation Worth The Risk

AXT is experiencing rapid growth driven by surging indium phosphide (InP) demand for AI and optical data transmission. Q2 2026 revenue soared 77% sequentially to $47.6 million, with record InP sales and substantial gross margin expansion to 44.9%. Strong operating leverage is evident, as non-GAAP net income reached $11.9 million versus a $0.15 loss per share a year ago.

Seeking Alpha • Aug 28, 2026

AXT's Supply Agreements Expand: Can They Strengthen Revenue Growth?

AXTI's expanding InP supply agreements, backed by customer deposits and commitments through 2031, improve shipment visibility and could support revenue growth.

Zacks Investment Research • Aug 27, 2026

Here's Why AXT (AXTI) Is a Great 'Buy the Bottom' Stock Now

AXT (AXTI) appears to have found support after losing some value lately, as indicated by the formation of a hammer chart. In addition to this technical chart pattern, strong agreement among Wall Street analysts in revising earnings estimates higher enhances the stock's potential for a turnaround in the near term.

Zacks Investment Research • Aug 25, 2026

Wall Street Analysts Believe AXT (AXTI) Could Rally 25.27%: Here's is How to Trade

The consensus price target hints at a 25.3% upside potential for AXT (AXTI). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.

Zacks Investment Research • Aug 21, 2026

AXTI vs. ASYS: Which AI Semiconductor Stock Is the Better Buy Now?

AXT leads Amtech Systems on AI-driven InP demand, earnings growth and capacity expansion, despite a premium valuation and advanced-packaging momentum.

Zacks Investment Research • Aug 21, 2026

AXT's InP Demand Is Surging: Can It Become a Long-Term Growth Driver?

AXTI's record InP revenues, $100M-plus backlog and capacity expansion point to a multiyear opportunity tied to AI data-center optical demand.

Zacks Investment Research • Aug 19, 2026

Optics Stocks Drop on Anthropic News, WSJ Report: Lumentum Down 10%, Corning Down 8%, AXT Down 12%

Optics stocks are getting hit hard at midday Tuesday as a risk-off wave washes through AI hardware names.

24/7 Wall Street • Aug 18, 2026

Here's Why AXTI Stock Is a Buy Despite Its Premium 48.12X Valuation

AXT's 399.3% YTD surge comes amid record InP revenues, AI data-center demand and long-term supply deals that could support its premium valuation.

Zacks Investment Research • Aug 17, 2026