In this article, we will look at the 5 Stocks Powering Portfolios by Double Digits. For a deeper discussion and an extended list, please see 10 Stocks Powering Portfolios by Double Digits.
The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels
5. Nebius Group NV (NASDAQ:NBIS)
Nebius climbed by 33.2 percent week-on-week, as investor sentiment was primarily driven by reports that it is venturing into a full-stack AI company with its planned acquisition of Israel-based artificial intelligence startup AI21.
According to a report by The Information, Nebius Group NV (NASDAQ:NBIS) is setting its sights on AI21 following the latter’s failed $3 billion merger plan with Nvidia Corp.
AI21 Chairman Amnon Shashua said earlier this year that the company is exploring strategic options with Nvidia and other buyers. Negotiations with Nvidia hit late stages, but later failed.
In other news, Nebius Group NV (NASDAQ:NBIS) received an optimistic coverage from Cantor Fitzgerald, with an “overweight” rating and a $129 price target, amid surging data center demand and the rapid expansion of the artificial intelligence sector.
Nebius Group NV (NASDAQ:NBIS) is currently underway with the expansion of its data center portfolio in line with its targets of 3 GW of contracted capacity by the end of the year.
Of the total, a 1 GW scale would come from its data center in Independence, Missouri, while another 310 MW is being developed in Finland. The latter is targeted for full operations next year and is set to be Europe’s largest data center so far.
It is also planning to strengthen its foothold in Finland with the development of more facilities in the area.
Last month, the company clinched a $27 billion deal with Meta Platforms Inc. for the delivery of compute capacity for its AI needs.
Of the total amount, $12 billion is set to be delivered over the next five years, to be followed by another $15 billion for another five years.
The deal followed Nebius’ partnership with Nvidia, under which they would jointly develop and deploy next-generation hyperscale cloud for the AI market. Nvidia also invested $2 billion in Nebius.
4. Hut 8 Corp. (NASDAQ:HUT)
Hut 8 soared by 37.3 percent week-on-week as investors loaded portfolios in technology stocks amid renewed optimism for the artificial intelligence sector, helped by the easing tensions in the Middle East.
Hut 8 Corp. (NASDAQ:HUT) rallied alongside its counterparts, as investors poured funds into companies tied to the US government’s priority industries, such as AI, rare earths, and semiconductors, among others.
Hut 8 Corp. (NASDAQ:HUT) is currently underway with the development of a $10 billion data center called River Bend with a designed 245 MW of power capacity.
Late last month, the company earned bullish coverage from Arete Research, issuing a “buy” recommendation and a $136 price target for the stock on optimism that Hut 8 Corp. (NASDAQ:HUT) would largely benefit from its River Bend facility.
In December last year, Hut 8 Corp. (NASDAQ:HUT) inked a 15-year leasing deal with Google, which has the potential to generate up to $17.7 billion in revenues if and when the latter exercises all its renewal options.
The base term covers 245 MW of IT capacity for Fluidstack for $7.7 billion. It also gives the latter the right of first offer for 1,000 MW of capacity in the campus’s future expansion.
3. Organon & Co. (NYSE:OGN)
Organon surged by 38.8 percent week-on-week, as investors gobbled up shares following reports that it is set to be acquired by Sun Pharmaceutical Industries for $12 billion.
According to a report by India-based The Economic Times, Sun Pharmaceutical submitted an offer to fully acquire Organon & Co. (NYSE:OGN) in an all-cash transaction. The two firms have yet to confirm or deny the reports.
Organon & Co. (NYSE:OGN) was spun off from Merck in 2021. It is engaged in the development of therapies for reproductive health, women’s health, and contraception, among others.
Earlier this year, the listed US-based firm announced results from the late-stage clinical trial of its VTAMA cream—the only aryl hydrocarbon receptor (AhR) agonist indicated for the treatment of both plaque psoriasis in adults, as well as atopic dermatitis (AD) in adults and pediatric patients aged 2 years and above.
Based on the results, the treatment candidate demonstrated early and consistent improvement in disease severity, as measured by vIGA-AD and EASI, and itch, as measured by PP-NRS, for patients down to age 2 with moderate to severe AD.
In other news, Organon & Co. (NYSE:OGN) posted a dismal earnings performance last year, with net income plunging by 78 percent to $187 million from $864 million in 2024. Revenues also dipped by 3 percent to $6.2 billion from $6.4 billion year-on-year.
In the fourth quarter alone, the company swung to a net loss of $205 million from a $109 million net income in the same quarter a year earlier, while revenues decreased by 5.3 percent to $1.5 billion from $1.59 billion year-on-year.
2. Applied Optoelectronics Inc. (NASDAQ:AAOI)
Applied Optoelectronics climbed by 44.9 percent week-on-week, with the rally primarily lifted by the overall optimism, thanks to the easing tensions between the US and Iran, while still favoring technology stocks riding the AI boom.
Further boosting sentiment for the company was news earlier that it saw a strengthening demand for its new 800G data center transceivers after one of its major hyperscale customers upsized its order to $124 million from $53 million previously.
“This increased order for our 800G transceivers reflects both the customer’s confidence in AOI and the growing demand for 800G optics,” Applied Optoelectronics Inc. (NASDAQ:AAOI) Chairman and CEO Dr. Thompson Lin said.
Following product qualification, Applied Optoelectronics Inc. (NASDAQ:AAOI) expects to start the delivery of both the initial and upsized orders in the second quarter of the year, with completion targeted by the end of 2026.
“We also recently shipped the first 10,000 units of an 800G single-mode transceiver order to another hyperscale datacenter customer,” Lin noted.
Launched in September last year, the 800G optical transceivers are built for high-performance AI and cloud data center networks requiring superior port density and bandwidth efficiency. It is available in standard pluggable form factors and is essential for high-capacity spine switching and high-speed GPU cluster interconnects.
1. Aehr Test Systems Inc. (NASDAQ:AEHR)
Aehr Test Systems climbed by 58.9 percent week-on-week, as investors took heart from the strong demand for semiconductors, spilling over to its stock.
In a statement, Aehr Test Systems Inc. (NASDAQ:AEHR) President and CEO Gayn Erickson announced big wins, including a newly clinched contract with a major customer for its high-power FOX-XP WLBI system for devices aimed at the hyperscale data center optical interconnect market.
Erickson said that the new customer is underway with the development of advanced silicon photonics–based transceivers for data center networking and optical I/O applications to address the rapidly accelerating demand for high-speed fiber optic communication links in hyperscale AI and cloud data centers.
“We believe this win positions Aehr to participate in what could be a significant multiyear expansion of silicon photonics production driven by the growth of fiber optic interconnects in hyperscale AI data centers,” he said.
Additionally, Aehr Test Systems Inc. (NASDAQ:AEHR) clinched new deals with two more clients for multiple testing machines and next-generation chips.
In other news, Aehr Test Systems Inc. (NASDAQ:AEHR) widened its net loss in the last quarter ending February 2026 by 398 percent to $3.2 million from only $643,000 in the same period a year earlier. Revenues also decreased by 43.7 percent to $10.3 million from $18.3 million year-on-year.
While we acknowledge the potential of AEHR 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 AEHR and that has 100x upside potential, check out our report about the cheapest AI stock.
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