Ten stocks soared by double digits on Wednesday, outperforming a lackluster market performance, as investors took path from a flurry of strong corporate earnings and rating upgrades, among others. Of the 10 firms, five surged to new record highs.
On Wall Street, only the Dow Jones and Nasdaq registered gains, up 0.02 percent and 0.17 percent, respectively. The S&P 500 dipped by 0.01 percent.
In this article, we spotlight the 10 top-performing stocks on Wednesday and detail the reasons behind their gains.
To come up with the list, we focused exclusively on stocks with a $2 billion market capitalization and 5 million shares in trading volume.
The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels
10. Western Digital Corp. (NASDAQ:WDC)
Western Digital rallied to a new all-time high on Wednesday, as investors loaded portfolios ahead of its earnings performance, with optimism fueled by strong results from one of its largest competitors.
At intra-day trading, the stock jumped to its highest price of $284 before trimming gains to finish the session just up by 10.79 percent at $279.70 apiece.
Western Digital Corp. (NASDAQ:WDC) is set to announce financial and operating highlights for the second quarter of fiscal year 2026 after market close tomorrow, January 29. A conference call will be held to discuss the results.
For the said period, Western Digital Corp. (NASDAQ:WDC) earlier announced expectations of $2.9 billion in revenues, plus or minus $100 million, with diluted earnings per share of $1.88, plus or minus $0.15.
Revenues were projected to be driven by data center demand, and improved profitability led by the adoption of high-capacity drives.
Also on Tuesday, February 3, Western Digital Corp. (NASDAQ:WDC) will hold an Innovation Day in New York to highlight key innovations designed to support the growing demand for data storage in the AI-driven data economy.
Meanwhile, the company on Tuesday earned a 10.4 percent higher price target from investment firm Mizuho, at $265 versus $240, while reaffirming an “outperform” rating.
9. Oklo Inc. (NYSE:OKLO)
Oklo grew its share prices by 10.70 percent on Wednesday to finish at $94.39 apiece, as investors mirrored the rally in nuclear stocks following the Department of Energy’s (DOE) announcement of a new initiative aimed at developing the country’s nuclear supply chain.
Oklo Inc. (NYSE:OKLO) rallied alongside its nuclear counterparts after the DOE asked states to host the “Nuclear Lifecycle Innovation Campuses,” which would support activities across the nuclear fuel lifecycle, including recycling used fuel.
“Unleashing the next American nuclear renaissance will drive innovation, fuel economic growth, and create good-paying American jobs while delivering the affordable, reliable, and secure energy America needs to power its future,” said Energy Secretary Chris Wright.
In other developments, Oklo Inc. (NYSE:OKLO) rode the rally in artificial intelligence stocks, following AI and semiconductor companies’ billion-dollar investments in the sector.
For energy firms such as Oklo Inc. (NYSE:OKLO), any further acceleration in AI and data centers spells good news as these would prop up demand in power, as well as future profit margins.
Oklo Inc. (NYSE:OKLO) remains a pre-revenue company and is currently underway with the development of its nuclear reactors called Aurora powerhouses.
8. Intel Corp. (NASDAQ:INTC)
Intel rallied for a second day on Wednesday, jumping 11.04 percent to close at $48.78 apiece, as investors loaded portfolios amid ongoing buzz that it has clinched a significant 2028 order from Nvidia Corp.
An article by the DigiTimes, citing recent supply chain reports, said that Nvidia and Apple Inc. are planning to collaborate with Intel Corp. (NASDAQ:INTC) on its 2028 Feynman architecture platform.
“Both companies are targeting ‘low volume, low-tier, non-core’ production runs to align with Trump administration directives while preserving their core TSMC relationships. This dual-foundry approach is designed to minimize mass production risks while satisfying political pressures,” the report said.
Neither Intel Corp. (NASDAQ:INTC), Nvidia, nor Apple has yet to confirm the report.
In other news, Intel Corp. (NASDAQ:INTC) last week announced that it swung to a net profit of $26 million in full-year 2025, versus a $19.23 billion net loss in 2024. Net revenues, on the other hand, were flat at $53 billion.
For the fourth quarter alone, the company widened its net loss by 118 percent to $333 million from $153 million in the same period in 2024, while revenues dipped by 4 percent to $13.67 billion from $14.26 billion year-on-year.
Looking ahead, the US-based chipmaker is targeting to book revenues between $11.7 billion and $12.7 billion in the first quarter of the year.
7. Eos Energy Enterprises Inc. (NASDAQ:EOSE)
Eos Energy snapped a three-day losing streak on Wednesday, jumping 11.13 percent to finish at $16.68 apiece, as investors took path from further investments in artificial intelligence, bolstering prospects for the utility-scale energy storage market.
This followed news earlier in the week that AI startup Anthropic successfully raised more than $10 billion in fresh funds from a recent fundraising program, valuing the company at $350 billion. Proceeds from the offer will be used to accelerate the development of AI data centers and support global expansion.
In other news, semiconductor giant Nvidia Corp. also this week acquired a $2 billion stake in CoreWeave Inc., reflecting its confidence in the latter’s business, team, and growth strategy as a cloud platform built on Nvidia infrastructure.
The investment is expected to support CoreWeave’s plan to develop more than 5 gigawatts of AI factories by 2030 and help advance global adoption of the sector.
For energy firms such as Eos Energy Enterprises Inc. (NASDAQ:EOSE), the rapid expansion of data centers could serve as a powerful growth catalyst, drive higher demand for energy storage, and reinforce long-term tailwinds for the sector.
Eos Energy Enterprises Inc. (NASDAQ:EOSE) owns and operates utility-scale battery energy storage systems, helping businesses manage unexpected power outages and congestion.
6. Intuitive Machines Inc. (NASDAQ:LUNR)
Intuitive Machines extended gains for a second day on Wednesday, to nearly hit its 52-week high, as investors took heart from a 30 percent price target upgrade from an investment firm.
At intra-day trading, Intuitive Machines Inc. (NASDAQ:LUNR) soared to its highest price of $23.32—just $0.57 shy of its 52-week high of $23.89 on January 31, 2025—before trimming gains to finish the session just up by 12.42 percent at $22.81 apiece.
In a market report, KeyBanc raised its price target for the company to $26 from $20 previously, while maintaining a “buy” recommendation amid its optimism for the overall space and defense sectors.
Apart from KeyBanc, Intuitive Machines Inc. (NASDAQ:LUNR) also received price target upgrades from investment firms Canaccord and Stifel.
On January 12, Canaccord raised its price target for the stock by 45.16 percent to $22.50 from $15.50 previously, while maintaining its “buy” recommendation.
Meanwhile, Stifel upgraded the stock to $20 from $18 previously, but downgraded the company to “hold” from “buy.”
Meanwhile, Morgan Stanley is also bullish about the space sector, saying that the “banner year” for the sector in 2025 is expected to spill over this year.
5. Nextpower Inc. (NASDAQ:NXT)
Nextpower soared to a new all-time high on Wednesday, thanks to a strong earnings performance and rating upgrades from several analysts.
At intra-day trading, the stock surged to its highest price of $131.59 before trimming gains to end the day just up by 13.28 percent at $119.97 apiece.
In an updated report, Nextpower Inc. (NASDAQ:NXT) said that its net income in the third quarter of the year rose by 12 percent to $131 million from $117 million in the same period a year earlier, while revenues increased by 34 percent to $909 million from $679 million year-on-year.
The strong results encouraged an optimistic outlook for the year, with the company raising its net profit outlook to a range of $525 million to $540 million from $499 million to $529 million previously. Revenues are also targeted at $3.425 billion to $3.5 billion, higher than the $3.275 billion to $3.475 billion previously, while diluted EPS is expected at $3.43 to $3.53, versus $3.26 to $3.46.
In line with the results, Nextpower Inc. (NASDAQ:NXT) announced plans to repurchase $500 million worth of its shares for a period of three years.
In other developments, the company earned higher price targets from investment firms.
KeyBanc was the most bullish, upgrading the stock to $142 and to an “overweight” rating, versus “sector weight” previously.
UBS, for its part, issued a $140 price target, higher by 12 percent than the $125 prior, while maintaining a “buy” recommendation.
Jefferies, on the other hand, raised the stock by 14 percent to $122 from $107, while issuing a “buy” recommendation amid the strong earnings results.
4. Stride Inc. (NYSE:LRN)
Stride jumped by 14.25 percent on Wednesday to close at $82.75 apiece as investors took heart from a strong earnings performance in the second quarter of fiscal year 2026.
In an updated report, Stride Inc. (NYSE:LRN) said it grew its net income for the quarter by 3 percent to $99.5 million from $96.4 million in the same period a year earlier.
Revenues increased by 7.5 percent to $631.3 million from $587.2 million year-on-year, thanks to a 7.8 percent jump in enrollments during the period, where it earned $2,437 per enrollment.
For the six-month period, net profit increased by 22 percent to $168.3 million from $137.3 million, while revenues jumped by 10 percent to $1.25 billion from $1.14 billion year-on-year.
Amid the strong results, Stride Inc. (NYSE:LRN) reaffirmed its full fiscal 2026 revenue outlook of $2.48 billion to $2.55 billion. Adjusted operating income is also expected at $485 million to $505 million.
For the third quarter ending March 2026, revenues are targeted at $615 million to $645 million, while adjusted operating income is pegged at $130 million to $140 million.
3. Energy Fuels Inc. (NYSEAmerican:UUUU)
Energy Fuels soared to a nearly 12-year high on Wednesday, as investors took heart from the Department of Energy’s (DOE) announcement of a new initiative that would support the acceleration of the nuclear sector in the US.
The DOE is asking states to host the “Nuclear Lifecycle Innovation Campuses,” which would support activities across the nuclear fuel lifecycle, including recycling used fuel.
Only around 5 percent of the value is used by a nuclear reactor, which means the used fuel has the potential to be recycled. At present, the US does not have commercial-scale uranium recycling in the US.
“Unleashing the next American nuclear renaissance will drive innovation, fuel economic growth, and create good-paying American jobs while delivering the affordable, reliable, and secure energy America needs to power its future,” Energy Secretary Chris Wright said.
The nuclear industry represents 21 percent of US power, but much of the uranium to run the plants are dependent on imports from other countries.
DOE aside, investment firm Roth upgraded Energy Fuels Inc. (NYSEAmerican:UUUU) to “neutral” from “sell” previously, as well as its price target by 19 percent to $15.50 from $13.
Roth said that the upgrade was based on optimism for “near-term catalysts and sentiment” for the company, such as higher uranium spot prices, among others.
2. Seagate Technology Holdings plc (NASDAQ:STX)
Seagate Technology soared to a new all-time high on Wednesday, as investor sentiment was boosted by an impressive earnings performance in the second quarter of fiscal year 2026.
At intra-day trading, the stock jumped to its highest price of $449.50 before trimming gains to finish the day just up by 19.14 percent at $442.93 apiece.
In an updated report, Seagate Technology Holdings plc (NASDAQ:STX) said that its net income for the quarter expanded by 76 percent to $593 million from $336 million in the same period a year earlier, while revenues jumped by 21.5 percent to $2.8 billion from $2.3 billion year-on-year.
“Seagate’s December quarter results exceeded our expectations on both the top and bottom line, setting new records for gross margin, operating margin, and non-GAAP EPS. This performance highlights our team’s strong operational execution, the durability of data center demand, and the ongoing ramp of our HAMR-based Mozaic products,” Chairman and CEO Dave Mosley.
“As AI applications amplify the creation and economic value of data, modern data centers increasingly need storage solutions that combine performance and cost-efficiency at exabyte-scale. Our areal-density-driven product roadmap positions us to meet the evolving storage requirements and exabyte demand growth, while creating significant value for our customers and shareholders for years to come,” Mosley concluded.
Looking into the third quarter, revenues are targeted at $2.9 billion, plus or minus $100 million, while diluted EPS is at $3.40, plus or minus $0.20.
1. Applied Optoelectronics Inc. (NASDAQ:AAOI)
Applied Optoelectronics soared to a nearly eight-year high on Wednesday, as investors took heart from positive coverage from an investment firm with a “buy” recommendation for its stock.
At intra-day trading, the stock climbed to its highest price of $46.30 before trimming gains to end the day just up by 20.97 percent at $45.23 apiece.
In its market report, Zacks Research posted optimism for Applied Optoelectronics Inc.’s (NASDAQ:AAOI) laser transceivers, deeming them critical to the AI revolution “because they overcome the speed and bandwidth limitations of traditional copper cables, making them valuable for enabling the massive, low-latency data flow required from training and operating large AI models.”
“Additionally, with copper prices rising currently, these fiber optic cables are even more valuable,” the research firm added.
Zacks said that Applied Optoelectronics Inc. (NASDAQ:AAOI) is currently benefiting either way, from both a shift away from expensive copper and a surge in data center expansion.
In other news, Applied Optoelectronics Inc. (NASDAQ:AAOI) earlier unveiled a new 400-milliwatt narrow-line-width pump laser, a new product designed to meet growing demand for silicon photonics and co-packaged optics (CPO) in AI data centers.
Applied Optoelectronics, Inc. (NASDAQ:AAOI) said that the laser addresses situations where lasers with broader line widths or higher noise figures limit performance. It can source directly into semiconductor chip-scale systems to provide hyperscalers with a robust, high-performance light source for CPO, silicon photonics, and other applications that demand precision and power from a single, stable wavelength.
While we acknowledge the potential of AAOI 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 AAOI and that has 100x upside potential, check out our report about this cheapest AI stock.
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