Eleven stocks were on a high note on Tuesday, dominated by US pharmaceutical companies, as investors began loading portfolios with those that would benefit from the US government’s imposition of a 100-percent tariff on drug imports.

The stocks outperformed broader market optimism, with Wall Street’s main indices finishing in the green amid the typical quarterly window-dressing. The Dow Jones inched up by 0.18 percent, the S&P 500 increased by 0.41 percent, while the tech-heavy Nasdaq grew by 0.30 percent.

In this article, we focus on the 11 stocks that led the charge and break down the reasons behind their gains.

To come up with the list, we focused exclusively on mid-cap stocks with more than $2 billion in market capitalization and 5 million shares in trading volume.

11. Avantor Inc. (NYSE:AVTR)

Avantor Inc. (NYSE:AVTR) saw its share prices grow by 5.41 percent on Tuesday to close at $12.48 apiece as investor funds poured into stocks of pharmaceutical companies a day ahead of the imposition of levies on imported drugs.

On September 25, President Donald Trump announced the imposition of 100 percent tariff on imported branded or patented pharmaceutical products beginning October 1, but those building a manufacturing plant in the US will be spared from such.

In line with the new policy, the US government has conducted a national security investigation to determine tariffs on pharmaceuticals.

Avantor Inc. (NYSE:AVTR)—a US-based biotechnology and pharmaceutical company—stands to benefit from the import levies as it would markedly raise the prices of imported brands and make domestic alternatives more affordable and attractive to customers.

10. GSK plc (NYSE:GSK)

Shares of GSK rallied for a third straight day on Tuesday to hit a new all-time high, as investors gobbled up shares in US-based pharmaceutical companies a day ahead of the official imposition of a hefty tariff on imported drugs.

During the session, GSK plc (NYSE:GSK) jumped to a new all-time high of $43.32 before giving up marginal gains to finish the day just up by 5.05 percent at $43.17 apiece.

While a London-based company, investors posted confidence on GSK plc (NYSE:GSK) following announcements that it would invest $30 billion in the US over the next five years.

Under President Donald Trump’s new tariff rules, imported drug products will be slapped as much as 100 percent levy, but those that will invest in manufacturing in the US could be exempted. The announcement sparked investor optimism that GSK plc (NYSE:GSK) will be spared from tariffs.

In other news, the company announced changes in its leadership following the resignation of Emma Walmsley as its chief executive officer. She will be replaced by incumbent chief commercial officer, Luke Miels, effective January 1, 2026.

“2026 is a pivotal year for GSK to define its path for the decade ahead, and I believe the right moment for new leadership,” Walmsley was quoted as saying in the company’s statement.

“Today, GSK is a biopharma innovator, with far stronger momentum and prospects than nine years ago,” she noted.

9. Freeport-McMoran Inc. (NYSE:FCX) 

Freeport-McMoran grew for a third straight session on Tuesday, adding 5.66 percent to finish at $39.22 apiece as investors cheered its divestment of a significant stake in an Indonesian subsidiary, as part of its strategy to extend mining operations at one of the largest copper mines in the world.

According to the company, it gave up a 12-percent stake in PT Freeport Indonesia to the Indonesian government “at no cost,” despite the latter only asking a 10 percent additional ownership.

The strategy forms part of an agreement to extend beyond 2041 its license to operate the Grasberg copper mine—the second largest copper mine in the world, while supporting Indonesia’s plans to have greater control of the mine.

Last September, Freeport-McMoran Inc. (NYSE:FCX) announced a force majeure on its Grasberg operations following a landslide that claimed the lives of two employees.As of Friday, five workers remained missing.

Freeport-McMoran Inc. (NYSE:FCX) said that the Grasberg ore mining site makes up half of Freeport Indonesia’s estimated reserves as of 2024, as well as 70 percent of its previous copper and gold production forecast for 2029.

8. NIO Inc. (NYSE:NIO)

NIO officially cracked past a new all-time high on Tuesday, as investors cheered the start of deliveries for a special variant of its executive flagship sedan.

During the session, NIO Inc. (NYSE:NIO) jumped to its highest price of $7.78 before trimming gains to finish the day just up by 5.69 percent at $7.62 apiece.

In an announcement on Weibo, NIO Inc. (NYSE:NIO) said it began delivering the ET9 Horizon Edition, 10 days after the vehicle’s official launch.

The news allayed concerns about the company’s production capabilities after announcing late last month that deliveries of the newly launched ES8 vehicle would be delayed for six months amid strong demand.

According to the company, it has fully sold the initial 40,000 units of the ES8, adding that new orders would face a waiting time of 24 to 26 weeks, or delivery as early as March 2026.

Meanwhile, NIO Inc. (NYSE:NIO) earlier earned a “buy” recommendation from Citigroup, alongside a price target of HK$65.90, higher than the HK$62.50 previously.

According to Citi, it added the EV-maker to its 30-day upside catalyst watch, indicating that it expects the latter to rapidly rise in the short term.

7. Dell Technologies Inc. (NYSE:DELL)

Shares of Dell Technologies jumped by 5.88 percent on Tuesday to end at $141.77 apiece after gaining a positive credit rating and outlook from Fitch Ratings.

In a statement, Fitch Ratings said it raised the Long-Term Issuer Default Ratings (IDRs) of Dell Technologies Inc. (NYSE:DELL) to BBB+ from BBB, and affirmed its Short-Term IDR at F2.

Companies under the BBB category indicate that default risks are currently low and that the capacity to pay obligations is considered adequate.

“The upgrade reflects core EBITDA leverage sustained below the previous 2x upgrade sensitivity since fiscal 2024. Fitch expects it to remain below this level through the rating horizon. The upgrade also reflects the rapid growth of Dell’s AI server business, which has created a large, higher-growth business line within its product suite,” Fitch Ratings said.

Within its Infrastructure Solutions Group (ISG), Dell Technologies Inc. (NYSE:DELL) guided that AI servers will generate $20 billion in revenues for the fiscal year 2026, from nearly zero before fiscal year 2024.

“Fitch expects growth, supported at fiscal 2Q26 by a $11.7 billion backlog, to moderate over the ratings horizon but the ISG will remain an overall growth driver. Rising data needs for generative AI increase system complexity, require larger inventory, and given system size, can cause notable timing effects on quarterly results,” it said.

6. Danaher Corp. (NYSE:DHR)

Danaher extended gains to a third consecutive day on Tuesday, jumping 6.56 percent to close at $198.26 apiece and tracking the rally in US pharmaceutical stocks ahead of the imposition of 100 percent tariff on imported drugs.

By tomorrow, October 1, the US will begin slapping levies on pharmaceutical products entering the US, except for companies that are already investing in manufacturing facilities in the country.

The tariffs are set to significantly raise the prices of imported products, making domestically produced ones more cost-efficient and attractive to customers.

Danaher Corp. (NYSE:DHR), an American company developing products for biotechnology, life sciences, and diagnostics, stands to benefit from the import levy as it could make its drugs more price-competitive, while reducing pressure from international players.

5. Merck & Co., Inc. (NYSE:MRK)

Shares of Merck & Co. Inc. (NYSE:MRK) rallied for a third straight day on Tuesday, as investors snapped up shares on twin catalysts, including tariffs on pharmaceutical imports and stellar results from its clinical trial for a treatment candidate for pulmonary arterial hypertension (PAH).

During the session, Merck & Co., Inc. (NYSE:MRK) finished the day up by 6.81 percent to close at $83.93 apiece, with investors loading portfolios in US-based pharmaceutical companies a day ahead of the official imposition of 100 percent tariffs on pharmaceutical imports.

By October 1, drugs entering the US will face a hefty tariff unless they invest in manufacturing facilities in the country.

The announcement sparked optimism for US pharmaceutical firms, including Merck & Co., Inc. (NYSE:MRK), as tariffs would make domestically produced products much cheaper and more appealing to consumers.

Additionally, Merck & Co., Inc. (NYSE:MRK) announced impressive results from the phase 3 trial of Winrevair for patients with PAH.

During the study, Merck & Co., Inc. (NYSE:MRK) said Winrevair reduced the risk of clinical worsening events by 76 percent. The trial enrolled patients who were within their first year of diagnosis.

The safety of Winrevair was also generally consistent.

4. Pfizer Inc. (NYSE:PFE)

Pfizer Inc. extended its winning streak to a third straight day on Tuesday, jumping 6.83 percent to close at $25.48 apiece as investors cheered its exception from the US government’s imposition of 100 percent tariffs on pharmaceutical imports.

In a statement, Pfizer Inc. (NYSE:PFE) said it reached a landmark agreement with the US government to lower prescription drug costs for American patients.

In response to the four points covered in Trump’s letter on July 31, Pfizer Inc. (NYSE:PFE) said it agreed to implement measures to ensure Americans receive comparable drug prices to those in other developed countries, and that pricing of newly launched medicines are at par with other developed markets.

Pfizer Inc. (NYSE:PFE) will also participate in a direct purchasing platform, TrumpRx.gov, that will allow American patients to purchase medicines from Pfizer at a significant discount.

The large majority of the company’s primary care treatments and some select specialty brands will be offered savings as much as 85 percent and on average 50 percent.

The agreement exempts the company from getting slapped with a 100 percent tariff that will be effective to all pharmaceutical imports beginning tomorrow, October 1.

3. CoreWeave, Inc. (NASDAQ:CRWV)

CoreWeave soared by 11.7 percent on Tuesday to end at $136.85 apiece after striking a new $14 billion dollar deal with Facebook owner, Meta Platforms Inc.

In a regulatory filing last week, CoreWeave, Inc. (NASDAQ:CRWV) said Meta committed to pay $14.2 billion for the supply of computing power, with an option to extend the contract through 2032.

The agreement followed CoreWeave, Inc.’s (NASDAQ:CRWV) separate $6.5 billion deal with OpenAI to power the training of its most advanced next-generation models, bringing its total contract with the latter to $22.4 billion.

In March 2025, CoreWeave, Inc. (NASDAQ:CRWV) announced an initial agreement with OpenAI with a contract value up to $11.9 billion, followed by an expanded agreement worth up to $4 billion in May 2025.

Also last month, CoreWeave, Inc. (NASDAQ:CRWV) announced a £1.5 billion commitment to powering UK AI innovation and growth, as well as the launch of CoreWeave Ventures, a new initiative committed to backing founders and companies developing the platforms and technologies shaping the AI ecosystem.

2. Bloom Energy Corporation (NYSE:BE)

Shares of Bloom Energy jumped by 14.90 percent on Tuesday to finish at $84.57 apiece as investors loaded portfolios following reports of a new giant power plant in Wyoming that would utilize its fuel cells.

In a market note, RBC Capital reported that BFC Power LLC filed an application with the Wyoming Department of Environmental Quality for the construction of a new 900-MW power plant in Laramie, Wyoming using Bloom Energy Corporation’s (NYSE:BE) fuel cells.

According to RBC Capital, the plant would support a 1.8 GW data center being developed by Crusoe and Tallgrass. If approved, the new development is expected to start construction as early as next year.

RBC Capital viewed the project as a significant growth opportunity for Bloom Energy Corporation (NYSE:BE), adding that its fuel cells have various advantages such as quick deployment, high reliability, flexibility, and have lower emissions.

“We believe the application is another proof point for how Bloom is able to support the build out of behind-the-meter co-located datacenters,” the investment firm said.

Bloom Energy Corporation (NYSE:BE) currently holds an “outperform” rating and a $75 price target from RBC Capital.

1. Wolfspeed Inc. (NYSE:WOLF)

Wolfspeed soared to a new all-time high on Tuesday as investors cheered news that it has officially exited bankruptcy protection.

During the session, Wolfspeed Inc. (NYSE:WOLF) jumped to its highest price of $34.28 before trimming gains to end the day just up by 29.41 percent at $28.60 apiece following news that it has completed financial restructuring, officially emerging from Chapter 11 protection.

Through the restructuring process, Wolfspeed Inc. (NYSE:WOLF) has reduced its total debt by approximately 70 percent, with maturities extended to 2030, and lowered its annual cash interest expense by roughly 60 percent.

“Wolfspeed has emerged from its expedited restructuring process, marking the beginning of a new era, which we are entering with new energy and a renewed commitment to the growth mindset and entrepreneurial spirit that have powered Wolfspeed since its inception,” Wolfspeed Inc. (NYSE:WOLF) CEO Robert Feurle said.

“As we enter this new era, we do so with much improved financial stability, a scaled, greenfield and vertically integrated 200mm facility footprint, and our large capital deployment behind us,” he added.

While we acknowledge the potential of WOLF 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 WOLF and that has 100x upside potential, check out our report about this cheapest AI stock.

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