Ten stocks clocked in double-digit gains anew on Tuesday, mirroring a broader market optimism, amid a combination of bullish outlooks and macroeconomic catalysts that bolstered investing appetite. Of the 10 firms, four soared to new all-time highs.
On Wall Street, all benchmark indices finished in the green, with the Dow Jones, the Nasdaq, and the S&P 500 all up by 0.99 percent, 0.65 percent, and 0.62 percent, respectively.
In this article, we focus on the 10 top-performing stocks on Tuesday and detail the reasons behind their gains.
To come up with the list, we focused exclusively on stocks with a market capitalization of at least $2 billion.
The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels
10. USA Rare Earth Inc. (NASDAQ:USAR)
USA Rare Earth extended its winning streak to a third consecutive day on Tuesday, jumping 10.89 percent to close at $17.52 apiece as investors took path from ongoing geopolitical tensions between the US and Venezuela, which could potentially open doors for the former’s access to the latter’s mineral-rich resources.
Over the weekend, the US government announced that it had captured Venezuelan President Nicolas Maduro who had been brought to the US for criminal charges, including narco-terrorism and drug trafficking. Traders took the arrest as a cue for the US’ potential access to the untapped mineral resources in Venezuela, especially as the world’s largest economy is ramping up its rare earth manufacturing to reduce dependence on China.
Venezuela’s Orinoco Mining Arc reportedly holds as much as 300,000 metric tons of rare earth deposits, including lanthanum, thorium, and crucially, neodymium—a key ingredient for manufacturing high-performance permanent magnets, which could spark rosy prospects for USA Rare Earth Inc.’s (NASDAQ:USAR) large magnet facility in Stillwater, Oklahoma.
Currently under development, USA Rare Earth Inc. (NASDAQ:USAR) said it targets commercial operations in the first half of the year.
Apart from USA Rare Earth Inc. (NASDAQ:USAR), other rare earth stocks also rallied during the session, including MP Materials Corp. ad Texas Mineral Resources Corp., among others.
9. Lumentum Holdings Inc. (NASDAQ:LITE)
Lumentum rebounded by 11.31 percent on Tuesday to finish at $397.42 apiece as investors loaded portfolios in preparation for its earnings performance in the second quarter of fiscal year 2026.
In an update on Monday, Lumentum Holdings Inc. (NASDAQ:LITE) said that it is scheduled to release its financial and operating highlights for the period covering October to December after market close on February 3. A conference call will be held to discuss on the results.
For the said period, Lumentum Holdings Inc. (NASDAQ:LITE) was looking to rake in revenues between $630 million and $670 million, with non-GAAP diluted earnings per share of $1.30 to $1.50, and non-GAAP operating margin of 20 to 22 percent.
In the first quarter of the year, Lumentum Holdings Inc. (NASDAQ:LITE) swung to a net income of $4.2 million from a $82.4 million net loss in the same period last year. Revenues jumped by 58 percent to $533.8 million from $336.9 million year-on-year, hitting the high end of its previous guidance.
Lumentum is one of the leading designers and manufacturers of innovative optical and photonic products enabling optical networking and laser applications worldwide. Its components and subsystems are part of virtually every type of telecom, enterprise, and data center network.
8. Warby Parker Inc. (NYSE:WRBY)
Warby Parker rallied for a third day on Tuesday, jumping 11.57 percent to finish at $25.94 apiece as investors took heart from an investment firm’s price target upgrade for its stock.
In an updated market report, TD Cowen raised its fair value target for Warby Parker Inc. (NYSE:WRBY) by 8 percent to $26 from $24 previously, buoyed by strong optimism for its artificial intelligence glasses.
Last month, Warby Parker Inc. (NYSE:WRBY) confirmed that the AI glasses—a new product in partnership with Google—is set to be launched sometime this year.
The AI glasses will incorporate multimodal AI with prescription and non-prescription lenses.
The partnership was inked in May last year, where Warby Parker Inc. (NYSE:WRBY) would design and develop the AI glasses, while Google would finance the product development for $75 million, alongside an optional investment in the former for another $75 million, subject to the achievement of certain milestones.
“Since our launch, we’ve set out to transform the optical industry by leveraging pioneering technology to design better products and experiences—and over the past 15 years, we’ve done just that,” said Warby Parker Inc. (NYSE:WRBY) co-Founder and co-CEO Dave Gilboa last month.
“Looking ahead, we believe multimodal AI is perfectly suited for glasses, enabling real-time context and intelligence to augment a wearer’s surroundings as they move through the world. We couldn’t be more excited to be partnering with Google to bring together the best of AI and the best of eyewear,” he added.
7. Microchip Technology Inc. (NASDAQ:MCHP)
Microchip Technology extended its winning streak to a third day on Tuesday, adding 11.65 percent to close at $74.87 apiece after hinting at having exceeded its net sales guidance for the third quarter of fiscal year 2026 and posting an upbeat outlook for the calendar year.
In its preliminary results, Microchip Technology Inc. (NASDAQ:MCHP) said that it expects to record $1.185 billion in net sales for the period ending December 31, 2025, exceeding its previous guidance of $1.109 billion to $1.149 billion.
“We continue to experience a fairly broad-based recovery in most of our end markets driven by progress we have made in inventory correction in distribution as well as direct customers, and with new customer designs turning to production. Our bookings activity was very strong in the December quarter despite a holiday filled quarter. Our March quarter starting backlog started out much better than that for the December quarter,” said Microchip Technology Inc. (NASDAQ:MCHP) President and CEO Steve Sanghi.
“We have made substantial progress on most elements of our nine-point recovery plan as well as our strategic initiatives. We have seen a substantial reduction in our internal inventory which will begin to lower our level of inventory write-offs. We are also preparing to ramp our factories in the March quarter which will begin to lower the amount of our under-utilization charges,” he noted.
Official results are scheduled to be released on February 5, 2026.
Looking ahead, Microchip Technology Inc. (NASDAQ:MCHP) said that it was looking forward to “a very good calendar year 2026.”
6. Navitas Semiconductor Corp. (NASDAQ:NVTS)
Navitas rallied for a third day on Tuesday, jumping 12.60 percent to finish at $10.19 apiece as investors continued to bargain-hunt from last week’s one-month low.
Tuesday’s rally, on the other hand, was supported by a broader market optimism and renewed confidence for the artificial intelligence sector, despite the lack of fresh company-specific developments to spark buying appetite.
Navitas Semiconductor Corp. (NASDAQ:NVTS) develops ultra-efficient gallium nitride (GaN) semiconductors for electric vehicles, data centers, consumer electronics, and renewable energy, among others.
For the fourth quarter of 2025, Navitas Semiconductor Corp. (NASDAQ:NVTS) expects to rake in revenues of $7 million at the midpoint, significantly lower than the $18 million in the same period last year.
The outlook reflects its strategic decision to deprioritize low power and pivot to higher power revenue and customers, streamline its distribution network and reduce channel inventory, as well as lower profit expectations from China Mobile and consumer business.
Based on its historical reporting dates, official fourth quarter results are scheduled to be released in the third week of February 2026.
5. Hecla Mining Company (NYSE:HL)
Hecla Mining soared to a new all-time high on Tuesday, mimicking the rally in spot prices of silver, as investor funds shifted to safer assets amid ongoing geopolitical tensions, while repositioning portfolios ahead of business updates.
At intra-day trading, the stock climbed to its highest price of $22.18 before trimming gains to finish the session just up by 12.87 percent at $22.27 apiece.
During the day, the spot prices of silver clawed back to the $81 territory, a few bucks shy of its highest level of $83, as investor funds flew to precious metals for safety while in a wait-and-see mode for developments surrounding the United States’ invasion of Venezuela.
The higher silver prices spilled over to mining companies, such as Hecla Mining Company (NYSE:HL), First Majestic Silver, and Pan American Silver, among others.
In other news, Hecla Mining Company (NYSE:HL) said that it would hold an Investor Day on January 26, where it would discuss its strategy, finance, operations, exploration, sustainability and innovation. The event will also coincide with its 135th founding anniversary.
“Achieving 135 years of mining operations is a reflection of Hecla’s persistence in improving operational performance and our ability to work through challenging times. The transformational year of 2025 exemplified this resilience, positioning us as the premier silver company, while delivering disciplined capital allocation and meaningful debt reduction,” said Hecla Mining Company (NYSE:HL) President and CEO Rob Krcmarov.
“We now have the brightest outlook in our history and are positioned to surface value for shareholders while remaining steadfastly committed to our silver-focused strategy,” he added.
4. Seagate Technology Holdings plc (NASDAQ:STX)
Seagate Technology climbed to a new all-time high on Tuesday, as investors took heart from Nvidia Corp. President and CEO Jensen Huang’s bullish outlook for the memory and storage markets, citing their massive growth potential amid the rapidly growing artificial intelligence sector.
At intra-day trading, the stock soared to its highest price of $332 before trimming gains to end the day just up by 14 percent at $330.42 apiece.
Speaking at the CES 2026, Huang said that the storage sector “is a completely unserved market today.”
“This market will likely be the largest storage market in the world, basically holding the working memory of the world’s AIs,” he noted.
Huang underscored that AI-related storage needs are currently outpacing current infrastructure capabilities, saying that the amount of context and token memory that needs to be processed “is now just way too high.”
Following Huang’s comments, Seagate Technology Holdings plc (NASDAQ:STX) rallied alongside its peers, namely Western Digital Corp., Sandisk Corp., and Micron Technology Inc., among others.
In other news, Seagate Technology Holdings plc (NASDAQ:STX) last Friday said that its chief executive officer, William Mosley, disposed of $5.7 million worth of ordinary shares in the company in a series of selling transactions on the same day. The shares were sold at prices ranging from $281.09 to $289 apiece. The transaction brought Mosley’s remaining direct shares in the company to around 430,000.
3. Western Digital Corp. (NASDAQ:WDC)
Western Digital rallied to a new all-time high on Tuesday, as investors loaded portfolios amid Nvidia Corp. President and CEO Jensen Huang’s bullish outlook for the overall memory sector.
At intra-day trading, the stock climbed to its highest price of $221.23 before trimming gains to end the day just up by 16.77 percent at $219.38 apiece.
Speaking at the CES 2026, Huang believed that the memory market was a “completely unserved” sector which is likely to become one of the largest in the world amid the rapidly growing demand from the artificial intelligence industry.
“This market will likely be the largest storage market in the world, basically holding the working memory of the world’s AIs,” he said, noting that AI-related storage needs are currently outpacing current infrastructure capabilities, as the amount of context and token memory needing to be processed is just “way too high.”
Western Digital Corp. (NASDAQ:WDC) rallied alongside its peers, namely Seagate Technology Holdings plc (NASDAQ:STX), Sandisk Corp., and Micron Technology Inc., among others, following the news.
On a separate note, Western Digital Corp. (NASDAQ:WDC)—based on its historical earnings reporting dates—would announce the results of its earnings performance for the second quarter of fiscal year 2026 in the last week of January.
In its updated guidance, Western Digital Corp. (NASDAQ:WDC) said that it was looking to record revenues of $2.9 billion, plus or minus $100 million, as well as diluted earnings per share of $1.88, plus or minus $0.15.
2. Sandisk Corporation (NASDAQ:SNDK)
Sandisk jumped to a new all-time high on Tuesday, as investors cheered Nvidia Corp. President and CEO Jensen Huang’s bullish outlook for the memory storage market, saying that the sector stands to become one of the largest industries in the world.
At intra-day trading, Sandisk Corporation (NASDAQ:SNDK) climbed to its highest price of $352 before paring gains to finish the day just up by 27.56 percent at $349.63 apiece.
Sandisk Corporation (NASDAQ:SNDK) rallied alongside its counterparts, namely Western Digital Corp., Seagate Technology Holdings, and Micron Technology, among others, after Huang said that he believes the memory storage market was an unserved sector that has the capability to become one of the largest in the world.
“This market will likely be the largest storage market in the world, basically holding the working memory of the world’s AIs,” he said in his talk at the CES 2026.
Huang said that the need for AI-related storage is currently outpacing current infrastructure capabilities, as the amount of context and token memory needing to be processed is just “way too high.”
In other developments, Sandisk Corporation (NASDAQ:SNDK) unveiled in the same event its new Solid-State Drive lineup called “Optimus,” designed for gamers, creators, and professionals.
1. OneStream, Inc. (NASDAQ:OS)
OneStream extended gains for a second day on Tuesday, soaring 28.38 percent to finish at $23.61 apiece as investors gobbled up shares following news that it was set to be acquired by Hg for $6.4 billion.
In a statement on the same day, OneStream, Inc. (NASDAQ:OS) said that it has entered into a definitive agreement with Hg—a leading investor in software, services and data businesses—for the acquisition of all its issued and outstanding shares at a price of $24 apiece, marking a 31 percent premium over its closing price prior to the announcement.
The transaction, which will be entirely paid in cash, will be executed through an entity owned and controlled by Hg.
The transaction is expected to close in the first half of the year, subject to regulatory approvals, including its shareholders.
“The Office of the CFO is at a critical AI inflection point, and we believe OneStream is well positioned for this shift. As we build on our strong foundation of growth, we are thrilled to partner with the teams at Hg, General Atlantic and Tidemark. Through this partnership, we are able to significantly advance our AI-first go-to-market strategy and expand our Finance AI capabilities at a rapid pace,” said OneStream, Inc. (NASDAQ:OS) CEO Tom Shea.
“This transaction delivers immediate value to our shareholders and is a vote of confidence in our strategy, our talented employees and our partner ecosystem. We look forward to having the ability to move faster, think bigger and deliver more for our forward-thinking Finance customers,” he added.
While we acknowledge the potential of OS 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 OS and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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 fund investor letters by entering your email below.
