The stock market kicked off the trading week in the red territory, as investors repositioned portfolios ahead of the highly anticipated earnings release of technology giant Nvidia Corp.
The Dow Jones led the drop among Wall Street’s main indices, shedding 0.77 percent, followed by the S&P 500 with 0.43 percent, and the Nasdaq by 0.22 percent.
Despite the broader market drop, 10 companies boasted a strong performance, gaining by high single digits to double digits during the day.
In this article, we name the 10 companies that shone out on Monday and detail the reasons behind their gains.
To come up with the list, we considered the stocks with more than $300 million in market capitalization and at least 5 million shares in trading volume.
A man in black suit holding a tablet looks at stock market data on a monitor. Photo by Tima Miroshnichenko on Pexels
10. Roblox Corp. (NYSE:RBLX)
Roblox saw its share prices grow by as much as 8 percent on Monday before paring gains to close at $124.81 apiece as investors took path from an investment firm’s bullish stance, saying that it was “the most compelling growth opportunity in the video game sector.”
In a market note, Wedbush maintained its “outperform” rating and price target of $165 on Roblox Corp.’s (NYSE:RBLX) stock amid its on-hit games that could drive platform growth, developer incentives, infrastructure improvements, and AI-driven discovery features.
The price target represents a 32-percent upside potential from its latest closing price.
Additionally, Wedbush said that Roblox Corp.’s (NYSE:RBLX) expansion into new genres and tapping the older demographics has raised its potential for advertising opportunities, while pricing optimization across games and regions continues to improve revenue streams.
While Wedbush acknowledges risks from ongoing legal challenges over the company’s alleged child sexual exploitation, the investment firm highlighted Roblox Corp.’s (NYSE:RBLX) track record in quick response with meaningful actions to create a safe environment across all age groups.
9. AST SpaceMobile, Inc. (NASDAQ:ASTS)
AST SpaceMobile grew its share prices by as much as 9 percent on Monday before paring gains to end the day at $50.01 apiece as investor sentiment continued to be bolstered by plans to launch 60 satellites next year.
Last week, AST SpaceMobile, Inc. (NASDAQ:ASTS) confirmed its fully-funded plan to deploy 45 to 60 satellites into orbit by 2026, saying that it would support continuous service in the US, Europe, Japan, and other strategic markets, including the US Government.
“We also have planned orbital launches every one to two months on average during 2025 and 2026,” he added.
Additionally, AST SpaceMobile, Inc. (NASDAQ:ASTS) is planning to deploy nationwide intermittent service in the US by the end of the year, followed by the UK, Japan, and Canada in the first quarter next year. This, alone, is expected to rake in revenues between $50 million and $75 million from government and commercial customers in the second half of the year.
In the second quarter, AST SpaceMobile, Inc. (NASDAQ:ASTS) widened its net loss attributable to shareholders by 37 percent to $99.4 million from $72.5 million in the same period last year, despite revenues growing by 28 percent to $1.156 billion from $900 million year-on-year.
8. IREN Ltd. (NASDAQ:IREN)
IREN Ltd. grew for a second day on Monday, jumping as high as 9.10 percent and closing at $23.12 apiece as investor sentiment was boosted by its gradual transition to Artificial Intelligence following the procurement of $295 million Blackwell chips from Nvidia Corp.
In a statement, IREN Ltd. (NASDAQ:IREN) said it purchased 4,200 additional Blackwell B200 GPUs from Nvidia for $193 million, effectively doubling its total GPU fleet to 8,500.
This was on top of another $102 million worth of Blackwell B200 and B300 GPUs, which were structured as a 36-month lease with a “high single digit” interest rate.
“Our expanded Blackwell capacity positions IREN to capture strong demand and drive the next phase of our AI Cloud revenue growth. Utilizing competitively priced, non-dilutive capital further strengthens the value proposition in scaling our AI Cloud business,” said IREN Ltd. (NASDAQ:IREN) co-founder and co-CEO Daniel Roberts.
In other news, IREN Ltd. (NASDAQ:IREN) is set to announce the results of its second quarter earnings performance after market close on Thursday, August 28. An investor call will occur on the same day to elaborate on the results.
7. ALT5 Sigma Corp. (NASDAQ:ALTS)
Shares of ALT5 Sigma rallied by as much as 11.6 percent on Monday before paring gains to close at $6.8 apiece as investors snapped up shares ahead of the official launch of the World Liberty Financial (WLFI) cryptocurrency.
WLFI, 7.5 percent owned by ALT5 Sigma Corp. (NASDAQ:ALTS) through a recent financial and strategic alliance, is set to debut on the cryptocurrency market on September 1 at 8 AM Eastern Time.
Upon debut, WLFI will unlock 20 percent of its total supply, while the remainder will be subject to community governance or extended vesting periods.
The launch followed ALT5 Sigma Corp.’s (NASDAQ:ALTS) investment of $1.5 billion in WLFI through a private deal with World Liberty Financial, Inc.
Under the agreement, ALT5 Sigma Corp. sold 100 million of its common shares at a price of $7.5 apiece, payment of which has been made in the form of WLFI tokens.
The transaction effectively established a WLFI treasury for ALT5 Sigma Corp. (NASDAQ:ALTS).
Following the transactions, World Liberty Financial co-founder and CEO Zach Witkoff became the chairman of ALT5 Sigma Corp.’s (NASDAQ:ALTS) board of directors, while Eric Trump, son of President Donald Trump, became a director of the company.
6. Rocket Lab Corp. (NASDAQ:RKLB)
Rocket Lab surged by as much as 11.7 percent at intra-day trading on Monday before paring gains to end the day at $47.22 apiece following the success of five mystery launches over the weekend.
According to the company, it successfully launched its 70th Electron mission into space, solidifying its position as one of the leading launch companies globally.
Called the “Live, Laugh, Launch” mission, five Electron rockets lifted off from Rocket Lab Corp.’s (NASDAQ:RKLB) Launch Complex 1 in Mahia, New Zealand late on Saturday, less than three weeks after Electron’s previous successful launch from the same site. The purpose and the launch, and for which client, however, have not been divulged.
“Reaching our 70th launch is a powerful moment for Rocket Lab, and what’s even more remarkable is the pace at which we are achieving these milestones. This mission is the latest testament to the responsiveness and operational maturity of Electron and the entire Rocket Lab team,” said Rocket Lab Corp. (NASDAQ:RKLB) founder and CEO Peter Beck.
The Live, Laugh, Launch mission marks the company’s 12th Electron launch this year alone.
5. Canopy Growth Corp. (NASDAQ:CGC)
Canopy Growth extended its winning streak to a third consecutive day on Monday, jumping as high as 15.7 percent during the day before closing at $1.44, after an analyst’s bullish rating on one of its peers spilled over to its stock.
In a market note, Jefferies gave Tilray Brands Inc.—one of Canopy Growth Corp.’s (NASDAQ:CGC) counterparts—a “buy” recommendation with a higher price target, saying that it would benefit from a potential rescheduling of cannabis use to a lesser federal restriction.
Earlier this month, President Donald Trump said that his administration was looking to loosen federal restrictions on the use of cannabis, which would see the likelihood of reclassifying it to Schedule II from I at present.
Drugs under Schedule II are classified with a high abuse risk but also have safe and accepted medical uses in the US.
Meanwhile, Schedule I drugs, where cannabis currently falls under, are those with a high abuse risk, without any safe and accepted medical use.
While originally a Canadian company, Canopy Growth Corp. (NASDAQ:CGC) is positioning itself for the US market, creating a new vehicle dedicated to such operations.
Through Canopy USA, the company is looking to ride into the projected $50 billion growth in the US cannabis market by next year.
4. Vital Energy, Inc. (NYSE:VTLE)
Vital Energy soared by as much as 19 percent on Monday before paring gains to close at $18.08 apiece following news that it is set to be acquired by Crescent Energy for $3.1 billion.
In a statement, Crescent Energy Company (NYSE: CRGY) said it entered into a definitive agreement to merge with Vital Energy, Inc. (NYSE:VTLE) for an all-stock transaction, inclusive of its net debt.
Under the terms, VTLE shareholders will receive an equivalent of 1.9062 CRGY common shares for every stock they own.
The value marked a 5-percent premium to the 30-day volume weighted average price exchange ratio and a 15 percent premium to Vital Energy, Inc.’s (NYSE:VTLE) 30-day VWAP as of August 22.
“Our combination with Crescent Energy will create a premier, scaled, mid-cap operator with significant efficiencies across a larger asset base. The combined businesses will have more capital allocation flexibility across a vast development inventory and the ability to immediately transfer best operating practices across basins,” said Vital Energy, Inc. (NYSE:VTLE) CEO Jason Pigott.
“We are confident that this deal is the right move for Vital shareholders, and it recognizes the hard work and dedication of all Vital employees over the last six years,” he added.
The transaction is expected to close by the end of the year and remains subject to shareholder and other regulatory approvals.
3. Richtech Robotics Inc. (NASDAQ:RR)
Richtech Robotics Inc. (NASDAQ:RR) jumped by as much as 23 percent at intra-day trading on Monday before paring gains to end the day at $2.38 apiece after sealing an agreement to support automation and robotics adoption of one of the largest retailers in the world.
In a regulatory filing on Monday, Richtech Robotics Inc. (NASDAQ:RR) said it entered into a two-year master services agreement with an undisclosed retailing giant under which it will provide support to the latter’s automation and robotics needs.
The agreement will automatically renew for one year unless either party provides written notice of non-renewal at least 60 days before the contract ends.
The deal comes amid the growing adoption of robotics and automation globally, as businesses seek to lower costs and improve operational efficiency.
In the retail industry alone, giant operators such as Amazon, Walmart, and Target, among others, have heavily adopted automation to streamline logistics networks.
Amazon alone committed earlier this year to invest $25 billion for the deployment of 1 million robots by 2030 as it aims to generate $10 billion in annual savings.
2. Tilray Brands, Inc. (NASDAQ:TLRY)
Tilray Brands soared by as much as 22.6 percent on Monday as investor sentiment was bolstered by an investment firm’s higher price target and bullish rating for its stock.
In a market note, Jefferies raised its price target for Tilray Brands, Inc. (NASDAQ:TLRY) to $2 from $1.5 previously, while maintaining a “buy” recommendation on expectations that a potential rescheduling of cannabis to Schedule II from I at present would largely benefit the company moving forward.
Drugs under Schedule II are classified with a high abuse risk but also have safe and accepted medical uses in the United States. These include certain narcotics, stimulants, and depressant drugs.
Meanwhile, Schedule I drugs, where cannabis currently falls under, are those with a high abuse risk, which means that it has no safe, accepted medical use in the United States.
Earlier this month, President Donald Trump said that his administration was looking to loosen federal restrictions on the use of cannabis and would make an official decision in the coming weeks.
Tilray Brands, Inc. (NASDAQ:TLRY) is a pharmaceutical company focusing on the production of medical and adult-use cannabis, craft beer, and beverages, among others.
1. Aehr Test Systems, Inc. (NASDAQ:AEHR)
Aehr Test Systems soared by as much as 42 percent on Monday as investors cheered news that a major hyperscaler building artificial intelligence processors placed additional orders for its chips, while hinting at more to come in the future.
In a statement, Aehr Test Systems, Inc. (NASDAQ:AEHR) said that it received follow-on orders for six Sonoma ultra-high-power packaged part burn-in systems from a major hyperscaler, which it refused to name.
It said the systems will be used for high-volume production test and burn-in of advanced AI processors, and will ship from its production facility in Fremont, California, over the next two quarters.
“This customer is one of the premier large-scale data center providers developing its own AI processors, and they have already indicated plans to expand capacity for this initial device and add additional AI devices over the next year. We are also engaged with them on future generations of processors to ensure we can support their long-term production needs,” said Aehr Test Systems, Inc. (NASDAQ:AEHR) President and CEO Gayn Erickson.
While we acknowledge the potential of AEHR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AEHR and that has 100x upside potential, check out our report about the cheapest AI stock.
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