--- title: "Jane Street's AXT stake grew to 6.5% while the stock fell a third, and AXT's China fab investors can redeem" description: "AXT's China subsidiary is financing the AI optics squeeze with money investors can claw back in three years, while the stock's largest disclosed holder is a market maker certified to have no influence. The filing that puts the two together is a week old and almost nobody has read the pair side by side." publisher: "The Inference" section: "Chips" published: 2026-11-10T14:14:04.411Z modified: 2026-11-10T14:14:04.411Z canonical: https://theinference.org/article/jane-street-s-axt-stake-grew-to-6-5-while-the-stock-fell-a-third-and-axt-s-china-fab-investors-can-redeem language: en keywords: "AXT, Jane Street, Fund Holdings, Indium Phosphide, Semiconductors, China" --- # Jane Street's AXT stake grew to 6.5% while the stock fell a third, and AXT's China fab investors can redeem > AXT's China subsidiary is financing the AI optics squeeze with money investors can claw back in three years, while the stock's largest disclosed holder is a market maker certified to have no influence. The filing that puts the two together is a week old and almost nobody has read the pair side by side. The most interesting document in the AXT story is [a certification](https://www.sec.gov/Archives/edgar/data/1051627/000159588826000160/0001595888-26-000160-index.htm), signed by Jeremy Kahn for three [Jane Street](https://theinference.org/markets/companies/jane-street) entities on November 9, 2026: the 4,246,421 [AXT](https://theinference.org/markets/companies/axt-inc) shares they hold, 6.5 percent of the class, "were not acquired and are not held for the purpose of or with the effect of changing or influencing the control" of the company [1]. Five weeks earlier, on a September 30 event date, the same filer reported [2,760,847 shares, 4.2 percent](https://www.sec.gov/Archives/edgar/data/1051627/000159588826000130/0001595888-26-000130-index.htm) [2]. That is 1,485,574 shares added through the fall, by a market maker swearing it has no opinion [1][2]. ## The squeeze is real, and priced in China The demand is not in dispute. AXT, the Fremont, California maker of indium phosphide wafers that carry the light inside AI data-center lasers, posted [record third-quarter revenue of $73.4 million](https://www.jain.com/axt-q3-2026-revenue-162-percent-73-4-million-indium-phosphide-tongmei/) on October 29, up 162 percent year on year and 54 percent sequentially, beating the $66.0 million [FactSet](https://theinference.org/markets/companies/factset) estimate, at a 56.0 percent gross margin [5][3]. Chief executive Morris Young says demand outpaces supply [5]. *Chart: **AXT's revenue more than doubled in a year on AI laser demand** Column chart of AXT quarterly revenue: roughly $28 million in Q3 2025, roughly $48 million in Q2 2026, and a reported $73.4 million in Q3 2026. The first two bars are estimates.* *Quarterly revenue in millions of dollars. Q3 2025 and Q2 2026 are approximate figures from Jain.com's coverage; Q3 2026 is AXT's reported quarter. Source: Jain.com [5]. [5]* ## The complication is a redemption clause The capacity to relieve that squeeze is being financed at Beijing Tongmei, AXT's majority-owned Chinese subsidiary, where investors from October 28 are [committing $285 million to $545 million](https://kalkine.com/news/technology/axt-nasdaqaxti-slips-8-pre-market-today-as-tongmei-raises-up-to-545-million-with-redemption-rights-attached), AXT adding $400 million of its own and keeping about 73.40 percent at the maximum [6][5]. The terms are AXT's own risk factor: if Tongmei does not complete a qualified IPO within three years, investors can redeem and AXT may have to support them; the agreement dies if closing slips past December 20, 2026 [6][5]. Every wafer still needs a Chinese export permit [5]. The market read the structure before the filing: AXTI closed October 28 at $64.38, fell 8 percent pre-market on the disclosure, and by November 9 had lost a third, to $42.91 [6][3][4]. [Nomura initiated at Buy with a $90 target](https://in.marketscreener.com/news/nomura-initiates-axt-inc-at-buy-with-90-price-target-ce785fdfdd8bf122) on November 4; the six-analyst average target is $91.50 [3]. Watch December 20, and the permits [3]. ## Takeaway Jane Street's passive stake in AXT grew from 2.76 million to 4.25 million shares while the stock lost a third of its value, and the Tongmei financing that funds the capacity has a redemption clause and a December 20, 2026 closing deadline. ## Sources 1. [SEC EDGAR, Schedule 13G, Jane Street Group LLC re AXT Inc, filed 9 November 2026](https://www.sec.gov/Archives/edgar/data/1051627/000159588826000160/0001595888-26-000160-index.htm) 2. [SEC EDGAR, Schedule 13G/A Amendment 3, Jane Street Group LLC re AXT Inc, filed 6 November 2026](https://www.sec.gov/Archives/edgar/data/1051627/000159588826000130/0001595888-26-000130-index.htm) 3. [MarketScreener India via MT Newswires, Nomura Initiates AXT Inc. at Buy With $90 Price Target, 4 November 2026](https://in.marketscreener.com/news/nomura-initiates-axt-inc-at-buy-with-90-price-target-ce785fdfdd8bf122) 4. [Bullished, Jane Street's Passive AXT Position Covers 4.2 Million Shares And 6.5% Of The Stock, 10 November 2026](https://www.bullished.co/jane-streets-passive-axt-position-covers-4-2-million-shares-and-6-5-of-the-stock-a16ea538/) 5. [Jain.com, AXT's 162% AI Surge Puts the Optics Squeeze at the Wafer, 2 November 2026](https://www.jain.com/axt-q3-2026-revenue-162-percent-73-4-million-indium-phosphide-tongmei/) 6. [Kalkine, AXT (NASDAQ:AXTI) Slips 8% Pre-Market Today as Tongmei Raises Up to $545 Million With Redemption Rights Attached, 5 November 2026](https://kalkine.com/news/technology/axt-nasdaqaxti-slips-8-pre-market-today-as-tongmei-raises-up-to-545-million-with-redemption-rights-attached) --- Jane Street's AXT stake grew to 6.5% while the stock fell a third, and AXT's China fab investors can redeem — The Inference. Canonical: https://theinference.org/article/jane-street-s-axt-stake-grew-to-6-5-while-the-stock-fell-a-third-and-axt-s-china-fab-investors-can-redeem