In this article, we deep dive into the 5 top-performing stocks on Wednesday. For a deeper discussion and an extended list, please see 10 Stocks Surviving Market Slaughter.
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5. Applied Optoelectronics Inc. (NASDAQ:AAOI)
Applied Optoelectronics jumped by 7.52 percent on Wednesday to finish at $175.13 apiece, as investors resumed buying positions in its stock amid strong investor optimism, fueled by the continued expansion of the artificial intelligence sector.
Investor optimism can be partly attributed to reports that AI giant OpenAI is looking to ink a lease deal with Fermi Inc., suggesting continued expansion in the broader sector.
The positive news spilled over to suppliers tied to data center development, including Applied Optoelectronics Inc. (NASDAQ:AAOI), on expectations that they will leverage AI expansion initiatives.
In other news, the optics industry received an optimistic rating from Nvidia Corp. CEO Jensen Huang.
At the ongoing Computex conference in Taiwan, Huang validated the importance of the optics industry in the future of artificial intelligence, saying that the right strategy “is to scale up with copper as long as you can. After that, you scale up further with optics.”
“You scale out with optics, and you scale across with optics. So you use optics wherever you must, you use copper wherever you can,” he noted.
Applied Optoelectronics Inc. (NASDAQ:AAOI) rallied alongside its counterparts, namely Marvell Technology, Credo Technology Group, Coherent Corp., and Lumentum Holdings, among others.
Further boosting sentiment was Rosenblatt’s highly optimistic outlook for the sector, saying that it expects key players to expand production capacities by approximately 12x through 2030 to support the growing demands from AI.
4. AXT Inc. (NASDAQ:AXTI)
AXT Inc. saw its share prices increase by 8.84 percent on Wednesday to finish at $85.29 apiece, as investors loaded portfolios in stocks riding the AI wave, thanks to strong optimism for the sector.
AXT Inc. (NASDAQ:AXTI) recently held its annual shareholders’ meeting last week to discuss and vote on corporate resolutions, including the hiking of authorized capital stock to 120 million shares from 70 million shares.
The resolution secured the approval of the shareholders and is effective upon filing with the Securities and Exchange Commission.
The amendment did not have any effect on the par value per share of AXT Inc.’s (NASDAQ:AXTI) common stock.
In other developments, AXT Inc. (NASDAQ:AXTI) is set to participate in the Northland Securities Virtual Growth Conference 2026 on June 23. Investors are expected to watch for early business cues and updates about its second-quarter earnings performance.
Last month, the company announced a huge improvement to its earnings performance for the first quarter of the year, with attributable net loss slashed by 81 percent to $1.62 million from $8.798 million in the same period last year. The drop was due to an 84 percent decrease in operating loss, at $1.585 million versus $10.275 million year-on-year. Revenues also surged by 39 percent to $26.9 million from $19.3 million year-on-year.
3. Webull Corp. (NASDAQ:BULL)
Webull rallied by 11.27 percent on Wednesday to close at $6.12 apiece, as investors resorted to bargain-hunting after crashing back to the $5 level last week.
The stock has already seen its stock price drop by 4.37 percent this month alone, while slashing its price by 21 percent year-to-date.
In other news, Webull Corp. (NASDAQ:BULL) last week expanded its investment options with the launch of a mutual fund for Individual Retirement Accounts.
In a statement, the company said that the new offering provides eligible IRA customers access to professionally managed mutual funds, enabling investors to build more diversified portfolios directly within its platform.
Webull Corp. (NASDAQ:BULL) said that the launch represents another step in its continued expansion of investment products designed to support a broader range of investor needs and long-term financial goals.
“Expanding access to mutual funds within IRA accounts allows investors to more easily diversify their portfolios and manage their retirement savings through a single platform,” said Lindsay Ryan, head of US products.
“By bringing more investment choices into one streamlined experience, we’re helping clients simplify long-term financial planning and stay focused on achieving their goals,” she noted.
2. Clover Health Investments Corp. (NASDAQ:CLOV)
Clover Health extended its winning streak to a third straight day on Wednesday, to hit a new all-time high, as investors loaded portfolios after the company earned a rating upgrade from the Centers for Medicare and Medicaid Services (CMS).
In intra-day trading, the stock surged to its highest price of $5.14 before trimming gains to end the session just up by 13.99 percent at $4.89 apiece.
In a regulatory filing, Clover Health Investments Corp. (NASDAQ:CLOV) announced that it received a 4.5 rating from CMS after it was ordered by a US court to recalculate its rating for the company.
It can be learned that Clover Health Investments Corp. (NASDAQ:CLOV) earlier sued the CMS and the US Department of Health and Human Services for its downgraded rating to 3.5 from what it deemed should be 4.0, saying that the agency calculated based on “improper use” of quality measures and methodologies.
The 3.5 rating, it said, would have slashed millions worth of quality bonuses and government reimbursements, as well as hurt its competitiveness and weaken future growth.
1. Fermi Inc. (NASDAQ:FRMI)
Fermi Inc. snapped a three-day losing streak on Wednesday, surging 22.60 percent to finish at $6.89 apiece, following news reports that OpenAI was planning to ink a deal from its Project Matador campus.
JMP Citizens reportedly said that OpenAI was among the companies assessing Fermi Inc.’s (NASDAQ:FRMI) capacity at the Project Matador, with the two firms nearing an agreement.
Fermi Inc. (NASDAQ:FRMI) earlier said that it was on track to deliver approximately 1.1 gigawatts of new power at its Amarillo campus by the end of the year. The entire project is designed to deliver 17 GW of energy by 2030.
Last month, Fermi Inc. (NASDAQ:FRMI) hinted at securing a leasing agreement with a new tenant over the next three months, details of which have not been divulged.
It said that it is also working diligently to hire its next CEO with the help of executive recruiting firm Heidrick & Struggles, following the ouster of Toby Neugebauer two weeks earlier. It is likewise exploring strategic partnerships to accelerate the deployment of power and data centers.
“Fermi America is at a meaningful inflection point in its development,” Fermi Inc. (NASDAQ:FRMI) Chairman Marius Haas said.
In other news, Fermi Inc. (NASDAQ:FRMI) markedly widened its net loss in the first quarter of the year to $188.69 million from $78 million in the same period last year, dragged by a higher operating loss of $166 million versus only $78 million year-on-year.
While we acknowledge the potential of FRMI 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 FRMI and that has 100x upside potential, check out our report about the cheapest AI stock.
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