Ten stocks stood firmer on Tuesday, defying a bloodbath in the broader market dragged by a steep technology selloff, with investors placing bets on their shares amid their rosy growth prospects.
Meanwhile, on Wall Street, the tech-heavy Nasdaq finished 2.21 percent lower, while the S&P 500 slashed 1.44 percent. The Dow Jones dipped by 0.09 percent.
Indices aside, we focus on the 10 top-performing stocks on Tuesday and break down the reasons behind their gains.
To come up with the list, we considered the stocks with a market capitalization of $2 billion and 5 million shares in trading volume.
The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels
10. International Business Machines Corp. (NYSE:IBM)
International Business Machines saw its share prices climb by 5.04 percent on Tuesday to close at $264.94 apiece, after JPMorgan turned bullish for its stock, thanks to the rosy prospects for its software business.
In a market note, JPMorgan upgraded International Business Machines Corp. (NYSE:IBM) to “overweight” from neutral previously, while raising its price target by 7.8 percent to $291 from $270.
The coverage reflected its optimism for a strong demand for software services amid the accelerating adoption of artificial intelligence.
It said that software services will become central to International Business Machines Corp. (NYSE:IBM), with growth further seen in the second half of the year. It expects the segment to bring in predictable high-margin subscription revenue and better cash flow, contributing to a better financial profile than what its traditional hardware and consulting segments have to offer.
At present, software services make up 45 percent of International Business Machines Corp.’s (NYSE:IBM) revenues.
The company “has spent the better part of a decade repositioning itself from a hardware and services business into a software-led platform anchored by hybrid cloud and AI,” JPMorgan said.
“However, we believe that investing in high-growth software now will actually reduce that need later. Over time, it will shift IBM toward recurring subscription revenue, permanently improving the company’s financial health,” it said.
9. GE Healthcare Technologies Inc. (NASDAQ:GEHC)
GE Healthcare climbed by 5.08 percent on Tuesday to finish at $63.72 apiece, after an investment firm issued a highly optimistic coverage for its stock, with a double-digit price target potential.
In a market note, RBC assigned an overweight rating and an $80 price target on shares of GE Healthcare Technologies Inc. (NASDAQ:GEHC), marking a 25.5 percent upside potential from its latest closing price.
RBC said that the coverage reflected its belief that the listed firm currently holds an attractive risk-reward profile not reflected in the approximately 11x 2027 price-to-earnings multiple.
It also noted GE Healthcare Technologies Inc.’s (NASDAQ:GEHC) increased research and development investments and commercial execution, which drove a 5 percent year-on-year increase in order momentum.
At present, GE Healthcare Technologies Inc.’s (NASDAQ:GEHC) backlog stands at $22 billion, roughly equal to estimated 2026 sales.
In other news, earlier this month, GE Healthcare Technologies Inc. (NASDAQ:GEHC) introduced a new cloud-enabled solution designed to help improve workflow and productivity and enable better patient care.
Called the Genesis Radiology Workspace, the technology is a next-generation solution designed to transform radiology workflows, unify the user experience, and empower radiologists with great efficiency and precision, including giving radiologists the freedom to read from anywhere without sacrificing speed or accuracy.
8. Butterfly Network Inc. (NYSE:BFLY)
Butterfly Network rebounded by 5.50 percent on Tuesday to finish at $7.67 apiece, as investors shifted to other high-growth industries and stocks amid a steep selloff in the AI and technology sectors.
Its rally can also be primarily attributed to the successful development of a full-body ultrasound scanner by Midjourney, built on Butterfly Network Inc.’s (NYSE:BFLY) chips.
According to the latter, it successfully incorporated 40 Butterfly Ultrasound-on-Chip imaging modules into Midjourney’s Scanner—a full-body tomographic imaging machine prototype, helping validate its technology.
”After nearly 35 years working in healthcare, it’s clear to me that our US healthcare system is still primarily designed to treat illness, not prevent it. The future of health starts with awareness: understanding your body earlier and tracking how it responds to factors like diet, exercise, and behavior. Midjourney has unveiled an extraordinary whole-body scanner—no radiation, no magnetic risk, low cost, and accessible—with about half a million sensors scanning simultaneously and over two petaflops of processing power. Designed for weekly use, this is the next generation of AI on device. A continuous window into your health… because the earlier you can see what’s changing, the sooner you can do something about it,” said Butterfly Network Inc. (NYSE:BFLY) Chairman, President, and CEO Joseph DeVivo.
Butterfly Network Inc. (NYSE:BFLY) earlier said that it expected $74 million in payments from the collaboration over a five-year period.
7. Zeta Global Holdings Corp. (NYSE:ZETA)
Zeta Global saw its share prices jump by 5.63 percent on Tuesday to finish at $19.51 apiece following news that it partnered with Palantir Technologies for the development of an AI infrastructure layer that connects operational intelligence, customer intelligence, and marketing execution.
Under the agreement, Zeta Global Holdings Corp. (NYSE:ZETA) and Palantir Technologies joined forces to combine AI infrastructure with the former’s intelligent decisioning and trusted data to bring a new standard of data-driven, agentic marketing to the enterprise.
“Marketing is at the front lines of the AI revolution. The enterprises that will lead are the ones whose marketing infrastructure is built to operate in real time, with data they can trust and AI that can act,” Zeta Global Holdings Corp. (NYSE:ZETA) said.
The partnership would pair two complementary platforms in a deep technical integration, with Palantir Foundry bringing the ontology, governance, and operational infrastructure that enterprise data demands, while Zeta Global Holdings Corp.’s (NYSE:ZETA) Data Cloud will be rearchitected on Foundry, with Athena—its AI-powered intelligence layer, turning the data into decisions and measurable outcomes at enterprise scale.
“Palantir has built the infrastructure the world’s most sophisticated institutions run on, and Zeta has built the intelligence infrastructure that powers how enterprises acquire, grow, and retain customers. Together, we are bringing AI-powered marketing to those same organizations on a platform they already trust,” Zeta Global Holdings Corp. (NYSE:ZETA) Chairman and CEO David Steinberg said.
“The next generation of enterprise value creation will come from connecting operational intelligence with customer intelligence. We believe this partnership can drive more than $100 million in annual revenue to Zeta in the coming years and help define what winning looks like in the agentic era.”
6. Bath & Body Works Inc. (NYSE:BBWI)
Bath & Body Works bounced back by 5.55 percent on Tuesday to end at $20.72 apiece as investors cheered its partnership with Ulta Beauty for the nationwide distribution of its products in the latter’s online platform and physical stores.
In a statement, Bath & Body Works Inc. (NYSE:BBWI) said that a curated selection of its products across home fragrance and body care is set to become available on the Ulta Beauty website and its 600 physical stores beginning June 12, 2026.
Bath & Body Works Inc. (NYSE:BBWI) said that the partnership reflects its broader marketplace strategy of expanding beyond its owned stores and digital channels to cater to more consumers in places they already discover, browse, and buy beauty, fragrance and self-care products.
“As the largest specialty beauty retailer in the US and a leading destination for brand discovery, Ulta Beauty offers access to highly engaged consumers who actively shop across categories, frequently test and explore new products, and seek high-quality, ingredient-led beauty brands. Bath & Body Works designed its assortment with this consumer at the center,” Bath & Body Works Inc. (NYSE:BBWI) said.
The home and body fragrance company said that it is already seeing encouraging results from selective and strategic marketplace expansion, reinforcing demand for the brand in new shopping environments.
While we acknowledge the potential of BBWI 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 BBWI and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the other 5 Resilient Stocks During Market Bloodbath.
Disclosure: None. Follow Insider Monkey on Google News.
