In this article, we are going to look at the 5 Mid-Cap Stocks That Are On Fire Right Now. For a longer list and more details on how we picked these stocks, you can go to 10 Mid-Cap Stocks That Are On Fire Right Now.
5. STMicroelectronics N.V. (NYSE:STM)
Year-to-Date Performance: 103.69%
Market Capitalization: $49.51 Billion
Number of Hedge Fund Holders: 18
STMicroelectronics N.V. (NYSE:STM) ranks among mid-cap stocks that are on fire right now. On April 24, UBS increased its price target on STMicroelectronics N.V. (NYSE:STM) from EUR 31 to EUR 49 and maintained its Buy rating on the stock.
The research firm pointed to the company’s Q1 2026 results as the largest earnings beat in almost three years. UBS noted that this performance by STMicroelectronics N.V. (NYSE:STM) shows that a cyclical recovery may be starting.
Photo by Arturo Añez on Unsplash
UBS also pointed to idiosyncratic drivers as sources of potential upside. These include AI data centers and low earth orbit satellite applications. The research firm believes these factors could provide further gains beyond the cyclical tailwind.
Following the quarterly results, UBS lifted its earnings estimates for STMicroelectronics N.V. (NYSE:STM). The research firm pointed out that the company appears to be in the early stages of a multi-quarter upgrade cycle.
STMicroelectronics N.V. (NYSE:STM) is a leading European multinational semiconductor company that designs and manufactures chips for automotive, industrial, communications equipment, and personal electronics.
4. Nokia Oyj (NYSE:NOK)
Year-to-Date Performance: 104.30%
Market Capitalization: $73.26 Billion
Number of Hedge Fund Holders: 36
Nokia Oyj (NYSE:NOK) ranks among mid-cap stocks that are on fire right now. On April 27, Argus upgraded its rating on Nokia Oyj (NYSE:NOK) from Hold to Buy and set the price target at $15 for the stock. The research firm’s long-term rating on the stock is also Buy.
Argus pointed to the company’s Q1 2026 non-IFRS earnings per share, which beat market expectations. However, Nokia Oyj (NYSE:NOK) posted revenue below consensus estimates. Despite this, both revenue in local currency and non-IFRS earnings per share showed year-over-year growth amid rising investments in AI within the networking sector.
Nokia Oyj (NYSE:NOK) is seeing increasing AI-related demand mainly in its Network Infrastructure segment. As a result, the company has lifted revenue growth guidance for this business in 2026. Meanwhile, its Mobile Networks business has remained stable but it could start experiencing growth to support AI data center traffic.
Additionally, the company’s acquisition of Infinera Corp. is helping reduce its reliance on the Mobile Networks business. Nokia Oyj (NYSE:NOK) is tracking above the midpoint of its non-IFRS operating profit forecast for 2026.
Nokia Oyj (NYSE:NOK) is a Finland-based technology company that specializes in telecommunications equipment, AI, networks, and related technologies. The company offers a range of solutions across cloud and network services, mobile networks, and network infrastructure.
3. Ciena Corporation (NYSE:CIEN)
Year-to-Date Performance: 117.54%
Market Capitalization: $75.69 Billion
Number of Hedge Fund Holders: 71
Ciena Corporation (NYSE:CIEN) ranks among mid-cap stocks that are on fire right now. On April 20, Morgan Stanley increased its price target on Ciena Corporation (NYSE:CIEN) from $286 to $405 and maintained its Equal Weight rating on the stock.
The research firm pointed out that optical stocks have continued to reach new heights. Morgan Stanley does not expect optical companies to “wane just yet as there is nothing that disproves the bull case for now.”
Earlier, on April 16, JPMorgan analyst Samik Chatterjee also lifted the firm’s price target on Ciena Corporation (NYSE:CIEN) from $380 to $550 and maintained an Overweight rating on the stock.
This update comes as the research firm adjusted its ratings and price targets in the hardware and networking group as part of JPMorgan’s Q1 preview. JPMorgan expects that investments in AI infrastructure, including servers, switches, copper interconnects, and opticals, will support growth for AI-levered suppliers in the first quarter.
Ciena Corporation (NYSE:CIEN) is an American optical networking systems and software company that specializes in networking systems, components, automation software, and related services.
2. Lumentum Holdings Inc. (NASDAQ:LITE)
Year-to-Date Performance: 146.03%
Market Capitalization: $67.83 Billion
Number of Hedge Fund Holders: 97
Lumentum Holdings Inc. (NASDAQ:LITE) ranks among mid-cap stocks that are on fire right now. On May 1, Rothschild Redburn initiated coverage on Lumentum Holdings Inc. (NASDAQ:LITE), giving the stock a Buy rating and setting the price target at $1,270.
The research firm said that Lumentum Holdings Inc. (NASDAQ:LITE) core business focuses on manufacturing laser components and finished products, including optical transceivers. The core business is expected to grow as the company brings about 80% more capacity online over the next 18 months. Additionally, capacity expansion may also be made possible by a recent $2 billion investment from NVIDIA.
According to Rothschild Redburn, this expansion will help Lumentum Holdings Inc. (NASDAQ:LITE) accelerate a progressive mix shift towards higher-priced 200Gbps laser chips. The company aims to take advantage of the strong demand for Indium Phosphide lasers. CEO Michael Hurlston expects this trend to continue for the next five years.
The research firm also noted that the narrow linewidth of Lumentum Holdings Inc.’s (NASDAQ:LITE) lasers makes them well-suited for use with thermally sensitive micro-ring modulators, which are being used by NVIDIA in its co-packaged optics.
Lumentum Holdings Inc. (NASDAQ:LITE) designs and manufactures innovative optical and photonic products and technologies that power the networks and infrastructure behind AI, cloud computing, and next-generation communications.
1. Bloom Energy Corporation (NYSE:BE)
Year-to-Date Performance: 194.38%
Market Capitalization: $82.64 Billion
Number of Hedge Fund Holders: 88
Bloom Energy Corporation (NYSE:BE) ranks among mid-cap stocks that are on fire right now. On April 28, BTIG increased its price target on Bloom Energy Corporation (NYSE:BE) from $165 to $295 and kept its Buy rating on the stock, pointing to the company’s Q1 2026 results and an expanded partnership with Oracle.
The company entered into a master services agreement with Oracle for up to 2.8 gigawatts of fuel cells. As part of the deal, Bloom Energy Corporation (NYSE:BE) also issued a warrant to Oracle for about 3.5 million shares. Additionally, Oracle and a neocloud partner reported plans to use 2.45 gigawatts of Bloom Energy Corporation’s (NYSE:BE) fuel cells at a new AI data center in New Mexico instead of gas turbines and diesel generators.
The initial phase of Oracle’s order of 1.2 gigawatt is expected to generate between $3.5 billion and $4.0 billion of revenue based on historical average selling prices. This represents around 50% to 55% of Wall Street’s projected product revenue for Bloom Energy Corporation (NYSE:BE) through 2027.
The company started the year with a product backlog of about $6 billion. Bloom Energy Corporation (NYSE:BE) also expects full utilization of its expanded manufacturing capacity at its Fremont plant for more than a year.
Looking ahead, Bloom Energy Corporation (NYSE:BE) plans to increase its manufacturing capacity beyond 2 gigawatts based on customer demand rather than making large expansions. BTIG believes that future growth at the Fremont facility will require capital spending of $100 million or less per gigawatt.
Bloom Energy Corporation (NYSE:BE) designs and manufactures fuel cell systems for on-site power generation for data centers, semiconductor manufacturing, large utilities, and other commercial and industrial sectors.
While we acknowledge the potential of BE 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 BE and that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
