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TTMI vs. AXTI: Which AI Infrastructure Stock Is the Better Pick?
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Key Takeaways
TTMI stands out over AXTI on diversified AI and defense exposure, improving profits and a lower valuation.
TTMI's data center and networking sales jumped 115% in Q3 2026, lifting the segment to 41% of total sales.
AXTI's Q2 2026 sales soared 164%, but China export permits and its 9.26X forward sales valuation add risk.
TTM Technologies (TTMI - Free Report) and AXT (AXTI - Free Report) benefit from the artificial intelligence (AI) infrastructure buildout, although they operate at different points in the connectivity supply chain. TTM Technologies manufactures advanced printed circuit boards (PCBs) and interconnect solutions that support high-performance computing and networking hardware. AXT supplies compound semiconductor substrates, particularly indium phosphide (InP), used to manufacture lasers and detectors for high-speed optical links.
Both companies stand to gain as hyperscalers expand AI computing capacity and transition toward faster, power-efficient interconnects. TTMI brings broader end-market exposure and greater operating scale, while AXTI offers more concentrated exposure to optical connectivity and faster recent percentage growth.
Let's dive deep and compare the two stocks' fundamentals to determine which is the better investment now.
The Case for TTMI Stock
TTM Technologies' AI infrastructure opportunity is accelerating as cloud and networking customers adopt its high-complexity N+M asymmetrical PCBs. These interconnects support demanding data-center architectures. Its data center and networking revenues surged 115% year over year in third-quarter 2026, accounting for 41% of company sales. Collaboration with major AI players and a 2.13 book-to-bill ratio reinforce demand visibility.
The company’s planned $400 million in capacity investments across China and Malaysia should help TTMI meet customer roadmaps while using existing facilities to accelerate production. Diversification offers another advantage over AXTI: aerospace and defense contributed 34% of quarterly sales, with a $2 billion program backlog. Recently completed acquisitions of Epiq Solutions and Swiss Technology Group extend differentiated defense and medical capabilities. The proposed $650 million Ophir Optics acquisition could add higher-margin infrared and laser-optics offerings.
Financial execution is encouraging. Third-quarter sales jumped 60% to $1.2 billion, adjusted EBITDA margin expanded 400 basis points to 20.1% and operating cash flow totaled $154.7 million. Management projects $6.5-$6.75 billion of sales in 2027, reflecting acquisitions already completed.
Nevertheless, aggressive expansion and acquisitions bring financing, integration and execution risks. Tight supplies of specialized PCB materials such as copper-clad laminates and T-glass, longer component lead times and reliance on major AI customers could slow shipments. TTM Technologies also faces meaningful leverage following its Epiq transaction, unlike AXTI's strengthened post-offering liquidity. A demand slowdown could weaken returns on its substantial capacity investments.
The Case for AXTI Stock
AXT provides a more focused way to participate in AI-driven optical connectivity. Its InP substrates support high-speed lasers and photodetectors used in 800G and 1.6T transceivers, with opportunities in next-generation optics. Its raw-material joint ventures and progress toward larger, six-inch wafers strengthen technology and supply-chain positioning.
Partnerships provide tangible demand support. Supply agreements with Coherent, Lumentum and Casela reinforce demand, including Coherent's six-inch wafer development program and Lumentum's capacity commitment through 2031. AXT plans to double InP capacity in 2026 and expand again in 2027, supported by backlog exceeding $100 million. Its top five customers represented 30% of second-quarter sales, with none accounting for more than 10%.
AXTI's second-quarter 2026 revenues soared 164% year over year to $47.6 million, including a record $30.7 million from InP. GAAP gross margin expanded to 44.9% from 8%, and earnings reached 17 cents per share versus a 16-cent loss a year earlier. Cash, restricted cash and investments of approximately $749 million provide resources for expansion.
However, AXTI’s operations are conducted on a much smaller scale compared to TTMI, and its wafer manufacturing is concentrated entirely in China. Chinese export permits for InP and other substrates can delay shipments and revenue recognition even when demand is strong. The liquidity boost largely reflects a dilutive equity offering, while operations consumed cash in the first half. Scaling complex six-inch wafers could create yield and cost pressures. Tongmei's proposed Hong Kong listing also adds uncertainty.
How Do the Consensus Estimates Compare for TTMI & AXTI?
TTM Technologies appears to have an advantage over AXT in terms of long-term earnings prospects, supported by stronger projected earnings growth and positive estimate revisions. The Zacks Consensus Estimate for TTMI’s 2027 earnings is pegged at $7.35 per share, reflecting an upward revision of 6.52% over both the past 30 and 60 days. This positive revision trend signals growing analyst confidence in TTMI’s earnings potential.
Image Source: Zacks Investment Research
In contrast, the consensus estimate for AXTI’s 2027 earnings stands at $2.20 per share, remaining unchanged over the same periods. While stable estimates suggest consistent expectations, the absence of upward revisions indicates relatively weaker earnings-estimate momentum. For investors, TTMI’s improving earnings outlook and positive revision trend make it a more compelling choice from an earnings-growth perspective. Image Source: Zacks Investment Research
TTMI vs. AXTI: Stock Performance and Valuation
Despite AXTI’s 256.1% year-to-date rally versus TTMI’s 25.8% gain, TTMI offers potentially greater upside. Its larger operating scale, diversified AI data-center and defense exposure, strong backlog and improving profitability support sustained growth. Meanwhile, AXTI’s sharp rally suggests substantial growth expectations may already be priced in, making TTMI comparatively attractive for long-term investors.
TTMI vs. AXTI: YTD Price Return Performance
Image Source: Zacks Investment Research
TTM Technologies appears more attractively valued than AXT, trading at a forward 12-month price-to-sales multiple of 1.7X compared with AXTI’s 9.26X. Additionally, TTMI’s VGM Score of B versus AXTI’s D indicates a more favorable combined profile across Value, Growth and Momentum factors under Zacks’ methodology. Together, these metrics give TTMI an edge in valuation and overall factor-based attractiveness.
TTMI vs. AXTI: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Conclusion
TTM Technologies emerges as the better investment choice right now, supported by diversified AI infrastructure and defense exposure, robust demand, expanding profitability and positive earnings-estimate revisions. Its attractive valuation and stronger VGM Score further enhance its appeal. Despite expansion and acquisition risks, TTMI’s larger scale and diversified operations offer a more favorable risk-reward profile than AXTI, which faces China-related uncertainties, business concentration and elevated valuation.
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TTMI vs. AXTI: Which AI Infrastructure Stock Is the Better Pick?
Key Takeaways
TTM Technologies (TTMI - Free Report) and AXT (AXTI - Free Report) benefit from the artificial intelligence (AI) infrastructure buildout, although they operate at different points in the connectivity supply chain. TTM Technologies manufactures advanced printed circuit boards (PCBs) and interconnect solutions that support high-performance computing and networking hardware. AXT supplies compound semiconductor substrates, particularly indium phosphide (InP), used to manufacture lasers and detectors for high-speed optical links.
Both companies stand to gain as hyperscalers expand AI computing capacity and transition toward faster, power-efficient interconnects. TTMI brings broader end-market exposure and greater operating scale, while AXTI offers more concentrated exposure to optical connectivity and faster recent percentage growth.
Let's dive deep and compare the two stocks' fundamentals to determine which is the better investment now.
The Case for TTMI Stock
TTM Technologies' AI infrastructure opportunity is accelerating as cloud and networking customers adopt its high-complexity N+M asymmetrical PCBs. These interconnects support demanding data-center architectures. Its data center and networking revenues surged 115% year over year in third-quarter 2026, accounting for 41% of company sales. Collaboration with major AI players and a 2.13 book-to-bill ratio reinforce demand visibility.
The company’s planned $400 million in capacity investments across China and Malaysia should help TTMI meet customer roadmaps while using existing facilities to accelerate production. Diversification offers another advantage over AXTI: aerospace and defense contributed 34% of quarterly sales, with a $2 billion program backlog. Recently completed acquisitions of Epiq Solutions and Swiss Technology Group extend differentiated defense and medical capabilities. The proposed $650 million Ophir Optics acquisition could add higher-margin infrared and laser-optics offerings.
Financial execution is encouraging. Third-quarter sales jumped 60% to $1.2 billion, adjusted EBITDA margin expanded 400 basis points to 20.1% and operating cash flow totaled $154.7 million. Management projects $6.5-$6.75 billion of sales in 2027, reflecting acquisitions already completed.
Nevertheless, aggressive expansion and acquisitions bring financing, integration and execution risks. Tight supplies of specialized PCB materials such as copper-clad laminates and T-glass, longer component lead times and reliance on major AI customers could slow shipments. TTM Technologies also faces meaningful leverage following its Epiq transaction, unlike AXTI's strengthened post-offering liquidity. A demand slowdown could weaken returns on its substantial capacity investments.
The Case for AXTI Stock
AXT provides a more focused way to participate in AI-driven optical connectivity. Its InP substrates support high-speed lasers and photodetectors used in 800G and 1.6T transceivers, with opportunities in next-generation optics. Its raw-material joint ventures and progress toward larger, six-inch wafers strengthen technology and supply-chain positioning.
Partnerships provide tangible demand support. Supply agreements with Coherent, Lumentum and Casela reinforce demand, including Coherent's six-inch wafer development program and Lumentum's capacity commitment through 2031. AXT plans to double InP capacity in 2026 and expand again in 2027, supported by backlog exceeding $100 million. Its top five customers represented 30% of second-quarter sales, with none accounting for more than 10%.
AXTI's second-quarter 2026 revenues soared 164% year over year to $47.6 million, including a record $30.7 million from InP. GAAP gross margin expanded to 44.9% from 8%, and earnings reached 17 cents per share versus a 16-cent loss a year earlier. Cash, restricted cash and investments of approximately $749 million provide resources for expansion.
However, AXTI’s operations are conducted on a much smaller scale compared to TTMI, and its wafer manufacturing is concentrated entirely in China. Chinese export permits for InP and other substrates can delay shipments and revenue recognition even when demand is strong. The liquidity boost largely reflects a dilutive equity offering, while operations consumed cash in the first half. Scaling complex six-inch wafers could create yield and cost pressures. Tongmei's proposed Hong Kong listing also adds uncertainty.
How Do the Consensus Estimates Compare for TTMI & AXTI?
TTM Technologies appears to have an advantage over AXT in terms of long-term earnings prospects, supported by stronger projected earnings growth and positive estimate revisions. The Zacks Consensus Estimate for TTMI’s 2027 earnings is pegged at $7.35 per share, reflecting an upward revision of 6.52% over both the past 30 and 60 days. This positive revision trend signals growing analyst confidence in TTMI’s earnings potential.
Image Source: Zacks Investment Research
In contrast, the consensus estimate for AXTI’s 2027 earnings stands at $2.20 per share, remaining unchanged over the same periods. While stable estimates suggest consistent expectations, the absence of upward revisions indicates relatively weaker earnings-estimate momentum. For investors, TTMI’s improving earnings outlook and positive revision trend make it a more compelling choice from an earnings-growth perspective.
Image Source: Zacks Investment Research
TTMI vs. AXTI: Stock Performance and Valuation
Despite AXTI’s 256.1% year-to-date rally versus TTMI’s 25.8% gain, TTMI offers potentially greater upside. Its larger operating scale, diversified AI data-center and defense exposure, strong backlog and improving profitability support sustained growth. Meanwhile, AXTI’s sharp rally suggests substantial growth expectations may already be priced in, making TTMI comparatively attractive for long-term investors.
TTMI vs. AXTI: YTD Price Return Performance
Image Source: Zacks Investment Research
TTM Technologies appears more attractively valued than AXT, trading at a forward 12-month price-to-sales multiple of 1.7X compared with AXTI’s 9.26X. Additionally, TTMI’s VGM Score of B versus AXTI’s D indicates a more favorable combined profile across Value, Growth and Momentum factors under Zacks’ methodology. Together, these metrics give TTMI an edge in valuation and overall factor-based attractiveness.
TTMI vs. AXTI: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Conclusion
TTM Technologies emerges as the better investment choice right now, supported by diversified AI infrastructure and defense exposure, robust demand, expanding profitability and positive earnings-estimate revisions. Its attractive valuation and stronger VGM Score further enhance its appeal. Despite expansion and acquisition risks, TTMI’s larger scale and diversified operations offer a more favorable risk-reward profile than AXTI, which faces China-related uncertainties, business concentration and elevated valuation.
TTMI and AXTI currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.