What happened Shares of AXT (NASDAQ: AXTI) surged on Friday. The manufacturer of compound semiconductor substrates posted an imressive fourth-quarter update, which featured rapid revenue growth and net income that more than doubled compared to the year-ago period. A few analyst upgrades for the tech stock likely also helped the stock on Friday. Image source: Getty Images. So what AXT's revenue in Q4 rose 47% year over year to $27 million. This was also up from $25.5 million in the third quarter of 2020. Net income for the period was $2.1 million, or $0.05 per share. This is up from $1 million, or $0.02 per share in the year-ago period. "2020 was a year of solid improvement for AXT, capped off by strong indium phosphide growth, particularly in 5G, in Q4, which is typically a seasonally down quarter," said AXT CEO Morris Young. Meanwhile, three analysts upgraded their 12-month price targets for the stock. Analysts from Northland, B. Riley Securities, and BWS Financial set price targets of $15, $12, and $20, respectively. Now what Young is optimistic about the company's future. As he explained: Now, with the gathering momentum of 5G and its related technologies, the technology progression in data center connectivity, and new applications emerging in healthcare and consumer devices, we believe AXT is in a strong position to lead our industry and enable many of the defining trends of the coming decade. 10 stocks we like better than AXTWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AXT wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source