On January 21, Lynn Martin, NYSE president, joined CNBC’s Sara Eisen to discuss the IPO landscape for 2026. Martin described 2026 as a potential super cycle for IPO activity and noted that a tremendous number of companies are currently at the one-yard line and ready to go public. She anticipates that this activity will begin to accelerate toward the end of Q1 and into Q2, and highlighted that some companies are already on the road with their offerings. Regarding mega IPOs like OpenAI, Anthropic, and SpaceX, Martin suggested that they will likely be more selective and take a measured approach due to the significant size of the capital they intend to raise.
Despite concerns coming from geopolitical instability, Martin asserted that the US markets remain incredibly resilient. She pointed out that even with the heavy news cycle of the past two weeks, markets remained stable and reached new highs across the Dow and the S&P 500. She emphasized that the IPO pipeline is diversified across multiple sectors and is not solely reliant on the tech industry. Martin also elaborated on the variety of sectors seeking to tap the market and noted that a company does not have to be focused on AI to go public. While acknowledging that AI is a transformational technology being used by every company to improve revenue and efficiency, she maintained that the overall market’s strength is broad-based.
That being said, we’re here with a list of the 10 new stocks on the rise.
Our Methodology
We first sifted through the Finviz stock screener to compile a list of new stocks that went public in the last 5 years and also had the highest 1-month performance of at least 15%. We then selected 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Note: All data was sourced on January 28.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 New Stocks on the Rise
10. SunPower Inc. (NASDAQ:SPWR)
Number of Hedge Fund Holders: 18
1-Month Performance: 16.05%
SunPower Inc. (NASDAQ:SPWR) is one of the new stocks on the rise. On January 16, SunPower achieved its first installation of Monolith panels created by Renewable Energy Corporation, with Silicon Valley’s Cobalt Power Systems installing them for a premium customer in Santa Cruz, California. Cobalt Power Systems CEO John Paul Bergh stated that demand for these high-quality, power-dense, premium modules has been extraordinary and that their first container, received on January 16, sold out immediately. Consequently, Cobalt Power Systems placed a second order and is actively designing and deploying Monolith tech at a rapid pace to meet the demands of tech-aware Silicon Valley homeowners seeking the most advanced solar tech available.
Earlier on January 23, SunPower Inc. (NASDAQ:SPWR) reported Q4 2025 results, with revenue climbing to $88.5 million from $70 million in the previous quarter and an operating income of $3.5 million, which was 4% of revenue.
Operationally, SunPower nearly doubled its sales force to approximately 2,000 representatives. Management also provided a conservative Q1 2026 revenue guidance of $84 million and noted some uncertainty due to seasonal factors and the solar tax credit environment, while setting a long-term goal to reach $1 billion in revenue by 2028.
SunPower Inc. (NASDAQ:SPWR) provides solar system sales and installation in the US. It operates through Residential Solar Installation and New Homes Business segments.
9. GlobalFoundries Inc. (NASDAQ:GFS)
Number of Hedge Fund Holders: 27
1-Month Performance: 28.79%
GlobalFoundries Inc. (NASDAQ:GFS) is one of the new stocks on the rise. On January 15, following a transfer of coverage, Citi raised its price target on GlobalFoundries to $42 from $35 with a Neutral rating on the shares. As part of this update, the firm rolled forward its valuation model to 2027 estimates, shifting from 2026.
In other news, on January 14, GlobalFoundries Inc. (NASDAQ:GFS) executed a definitive agreement to acquire Synopsys Inc.’s (NASDAQ:SNPS) ARC Processor IP Solutions business, including its engineering and design teams. This is a strategic move designed to accelerate the physical AI roadmaps for both GF and MIPS while strengthening capabilities in custom silicon solutions.
The acquisition encompasses the ARC-V, ARC-Classic, ARC VPX-DSP, and ARC NPX NPU product lines, as well as application-specific instruction set processor tools like ASIP Designer and ASIP Programmer. Upon closing, these assets will be integrated with MIPS, which is a GlobalFoundries company, to provide a processor IP suite tailored for physical AI. This expanded offering is intended to enhance customer engagement through IP licensing and software, enabling a faster time-to-market for GF’s customers.
GlobalFoundries Inc. (NASDAQ:GFS) is a semiconductor foundry that provides a range of mainstream wafer fabrication services and technologies worldwide.
8. Bitdeer Technologies Group (NASDAQ:BTDR)
Number of Hedge Fund Holders: 26
1-Month Performance: 31.70%
Bitdeer Technologies Group (NASDAQ:BTDR) is one of the new stocks on the rise. On January 15, Northland lowered the price target on Bitdeer to $25 from $35 while maintaining an Outperform rating following the company’s December production results. Northland also removed the 175 MW Tydal site from its HPC valuation to be more conservative.
In Q3 2025, Bitdeer Technologies Group (NASDAQ:BTDR) reported a 173.6% year-over-year revenue surge to $169.7 million, which outperformed market forecasts. This was fueled by a 315.6% increase in self-mining revenue as the company ramped up its hash rate to 29.1 EH/s and benefited from higher Bitcoin prices. The company also posted a net loss of $266.7 million. Management highlighted a pivot toward AI infrastructure for a $2 billion annualized revenue run rate by the end of 2026 through the expansion of its 1.6 GW global power capacity.
However, the quarter was marked by a setback as the development of the next-gen SEAL04 ASIC chip faced substantial delays, a disclosure that triggered a sharp decline in stock price and subsequent investor class-action lawsuits in early 2026. However, the SEAL04 chip development is back on track as of the January 12 operational update. Bitdeer announced that it has verified its SEAL04-1 chip design, which showed a high power efficiency of 6–7 J/TH. The company has officially targeted mass production for this chip in Q1 2026.
Bitdeer Technologies Group (NASDAQ:BTDR) is a technology company for blockchain and HPC in Singapore, the US, Bhutan, and Norway.
7. WhiteFiber Inc. (NASDAQ:WYFI)
Number of Hedge Fund Holders: 18
1-Month Performance: 40.68%
WhiteFiber Inc. (NASDAQ:WYFI) is one of the new stocks on the rise. Earlier on December 24, B. Riley lowered its price target on WhiteFiber to $40 from $44. This sentiment was posted based on model changes while maintaining a Buy rating. B. Riley noted that the company’s December 18 announcement of a 10-year co-location agreement with UK-based Nscale at its NC-1 campus.
This initial agreement for 40 MW of critical IT load is expected to generate $865 million in total revenue, or approximately $2 million per MW, which aligns with previous guidance; however, the firm lowered its Q2 2026 EBITDA estimate to $17.9 million from $19.5 million and its FY26 estimate to $92.7 million from $99.5 million due to more conservative assumptions regarding cloud services.
Nscale will use this capacity for global tech customers, with billing for the first 20 MW targeted for April 30 this year, and the remaining 20 MW for May 30 this year, under terms that include 3% annual rate escalators and milestone-based payments. WhiteFiber has invested $150 million in equity at the site and anticipates formalizing a credit facility in early Q1 2026. It is in advanced discussions with institutional lenders and believes the campus could eventually support up to 200 MW of total electrical supply.
WhiteFiber Inc. (NASDAQ:WYFI) designs, develops, and operates data centers and provides AI infrastructure solutions. The company offers hosting, colocation, and cloud-based HPC GPU services.
6. CoreWeave Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 62
1-Month Performance: 42.03%
CoreWeave Inc. (NASDAQ:CRWV) is one of the new stocks on the rise. On January 27, Deutsche Bank upgraded CoreWeave to Buy from Hold with a $140 price target, which was brought up from $100, as the firm noted a solid medium-term outlook heading into the Q4 2025 report. The firm believes that consensus revenue estimates for CoreWeave can move materially higher throughout 2026 if the company delivers capacity on plan to its contracted customers, and Deutsche sees an opportunity for the company to differentiate itself from peers during that year.
A day before the Deutsche Bank rating, Mizuho analyst Gregg Moskowitz also raised the firm’s price target on CoreWeave Inc. (NASDAQ:CRWV) to $100 from $92 while maintaining a Neutral rating. This decision was made following the announcement that the company and Nvidia Corporation (NASDAQ:NVDA) are expanding their relationship to accelerate a 5GW capacity build-out alongside an incremental $2 billion equity investment.
While Mizuho remains somewhat more reserved regarding the scale of potential revenue upside over the next few quarters due to a highly capacity-constrained environment, Moskowitz noted that the announcement provides incremental confidence in the longer-term trajectory.
CoreWeave Inc. (NASDAQ:CRWV) operates a cloud platform that provides scaling, support, and acceleration for GenAI. It builds the infrastructure that supports compute workloads for enterprises.
5. Karman Holdings Inc. (NYSE:KRMN)
Number of Hedge Fund Holders: 34
1-Month Performance: 45.82%
Karman Holdings Inc. (NYSE: KRMN) is one of the new stocks on the rise. On January 28, KeyBanc analyst Michael Leshock raised the price target for Karman to $122 from $80 with an Overweight rating. This adjustment was made as part of a broader sector update. The firm pointed to a surge in momentum within the space and defense tech industries, projecting that an ideal macroeconomic environment will persist through 2026. This favorable backdrop is expected to unlock substantial growth opportunities and lead to a positive re-rating of equities across the industry.
Furthermore, on January 21, Piper Sandler initiated coverage of Karman with a Neutral rating and a $98 price target, balancing the company’s strong fundamentals against its recent rapid share appreciation. While the firm acknowledged Karman’s high-quality long-term growth potential, driven by its focus on defense and a successful M&A strategy, the firm suggested that the stock’s 37% rally over the first 13 trading days of 2026 exhausted its immediate tactical appeal. Consequently, Piper Sandler views the current valuation as a difficult entry point.
Citi also increased its price target for Karman Holdings Inc. (NYSE:KRMN) to $123 from $84 on January 13 with a Buy rating as part of a broader update to its aerospace and defense coverage. The firm believes that the sector’s current momentum is set to persist through at least H1 2026.
Karman Holdings Inc. (NYSE:KRMN), through its subsidiary, designs, tests, manufactures, and sells mission-critical systems in the US. It offers payload protection and deployment systems, aerodynamic interstage systems, and propulsion systems.
4. USA Rare Earth Inc. (NASDAQ:USAR)
Number of Hedge Fund Holders: 30
1-Month Performance: 83.94%
USA Rare Earth Inc. (NASDAQ:USAR) is one of the new stocks on the rise. On January 27, Canaccord increased its price target for USA Rare Earth to $33 from $23, while maintaining a Buy rating. This followed the company’s announcement of a $1.6 billion letter of intent from the US Department of Commerce’s CHIPS Program and a collaboration with the Department of Energy. This federal backing led the firm to accelerate its operational timeline and update its financial estimates.
Although the firm noted a structural deficiency compared to peers, specifically a lack of government-guaranteed price floors and offtake agreements, management remains confident that the business model is sustainable without such protections, positioning the company as a key player in the domestic rare earth supply chain.
On the same day, Benchmark analyst Subash Chandra also raised the price target for USA Rare Earth Inc. (NASDAQ:USAR) to $45 from $15 with a Buy rating after the company secured 85% of the $4.1 billion required for full vertical integration. The capital includes $1.9 billion in government funding, which is surprisingly large in scale. The new target accounts for a doubling of projected magnet-making capacity to 10,000 metric tons annually, while also incorporating multiple revenue streams from upstream mining at Round Top, midstream metal-making, and third-party concentrate processing.
USA Rare Earth Inc. (NASDAQ:USAR) mines, processes, and supplies rare earths and other critical minerals in the US. It explores for neodymium, dysprosium, terbium, gallium, beryllium, lithium, and other critical minerals.
3. Critical Metals Corp. (NASDAQ:CRML)
Number of Hedge Fund Holders: 20
1-Month Performance: 124.42%
Critical Metals Corp. (NASDAQ:CRML) is one of the new stocks on the rise. On January 20, Clear Street raised its price target for Critical Metals from $14 to $20 with a Buy rating following the signing of a strategic 50/50 joint venture with a major Saudi Arabian industrial conglomerate, Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers. The partnership aims to develop and construct a rare earth processing facility and mark the company’s expansion. The firm projects that the Tanbreez project will achieve an annual production of ~100,000 metric tons of rare earth element concentrate during its first phase.
On January 15, Critical Metals Corp entered into this non-binding agreement, where the proposed refinery would process ~25% of the output from the company’s Tanbreez mine in Greenland, specifically targeting the supply chain for the US defense sector. This partnership is expected to solidify the project’s financial standing and provide a guaranteed customer base for the $290 million development.
The move coincides with heightened geopolitical focus on Greenland’s mineral wealth, underscored by recent high-level meetings between Danish, Greenlandic, and US officials. To support the project’s importance in breaking China’s processing monopoly, the US Export-Import Bank is considering a $120 million loan for the Tanbreez mine. By pre-selling the remaining 75% of its output to markets in the US and Europe, Critical Metals Corp. (NASDAQ:CRML) allocated its planned production, positioning the Saudi facility as a vital link in a new Western-aligned supply chain for next-gen military technologies.
Critical Metals Corp. operates as a mining exploration and development company in Austria and Southern Greenland. The company explores for lithium and rare earth element deposits. The company is based in Road Town, British Virgin Islands. Critical Metals Corp. is a subsidiary of European Lithium Limited.
Critical Metals Corp. (NASDAQ:CRML) operates as a mining exploration and development company in Austria and Southern Greenland. It explores for lithium and rare earth element deposits.
2. Alumis Inc. (NASDAQ:ALMS)
Number of Hedge Fund Holders: 26
1-Month Performance: 138.92%
Alumis Inc. (NASDAQ:ALMS) is one of the new stocks on the rise. On January 21, Chardan initiated coverage of Alumis with a Buy rating and a $37 price target driven by the significant potential of the company’s late-stage autoimmune pipeline. The firm’soutlook is driven by envudeucitinib, which is a TYK2 inhibitor that recently met all primary and secondary endpoints in two Phase III trials for moderate-to-severe plaque psoriasis. By showing high statistical significance in skin clearance and patient-reported outcomes, the asset positions Alumis to address TYK2-mediated disorders effectively.
Additionally, on January 9, H.C. Wainwright doubled its price target for Alumis to $40 from $20 with a Buy rating after the Phase 3 envudeucitinib data reset expectations for the oral TYK2 market. The firm’s upward revision is driven by a reduced risk of regulatory failure and a higher projected revenue ceiling following the successful clinical readout.
Morgan Stanley also raised its price target for Alumis to $33 from $22 on January 7 with an Overweight rating following positive topline results from the Phase 3 ONWARD program. The firm’s optimism stems from the performance of lead asset envudeucitinib in treating moderate-to-severe plaque psoriasis, which prompted analysts to increase the probability of success for this indication to 80% from 60%.
Alumis Inc. (NASDAQ:ALMS) is a clinical-stage biopharmaceutical company that develops and commercializes medicines for autoimmune disorders. It was formerly known as Esker Therapeutics.
1. Erasca Inc. (NASDAQ:ERAS)
Number of Hedge Fund Holders: 24
1-Month Performance: 186.35%
Erasca Inc. (NASDAQ:ERAS) is one of the new stocks on the rise. On January 27, Guggenheim increased its price target for Erasca from $5 to $12 with a Buy rating. This decision followed a model update that accounted for recent clinical developments and fresh financing. The firm’s revised valuation includes risk-adjusted revenue estimates for the candidate ERAS-0015, assigning it a 30% probability of success in treating second-line or later NSCLC and PDAC. These projections are centered on an anticipated commercial launch in 2030, alongside updated expectations for ERAS-4001.
A day before that, Morgan Stanley also increased the price target for Erasca to $10 from $4 while maintaining an Equal Weight rating. This adjustment followed promising initial clinical data for ERAS-0015. The update was triggered by reports of two confirmed and one unconfirmed partial response at the 8 mg QD dose level. Although the firm raised its probability-of-success estimates based on these early signs of efficacy, it remains cautious and noted that the clinical data set is still in its infancy.
Earlier on January 16, Piper Sandler raised its price target for Erasca to $11 from $5 with an Overweight rating after the firm updated its 2026 Catalyst Tracker and refined several valuation models following a series of updates from companies across its coverage. The revised target reflects the firm’s broader effort to incorporate recent industry shifts and internal tracking data into its outlook for the biopharma sector.
Erasca Inc. (NASDAQ:ERAS) is a clinical-stage precision oncology company that discovers, develops, and commercializes therapies for patients with RAS/MAPK pathway-driven cancers.
While we acknowledge the potential of ERAS 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 ERAS and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
