In this article, we deep dive into the 5 Stocks Racking Up Monster Gains. For a deeper discussion and an extended list, please see 10 Stocks With Easy Double-Digit Gains.
The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels
5. Applied Optoelectronics Inc. (NASDAQ:AAOI)
Applied Optoelectronics notched a fresh all-time high on Wednesday following a three-day winning streak, after clinching a new partnership with Mediacom for the supply of three products in support of the latter’s aim to upgrade its network.
In intra-day trading, the stock climbed to its highest price of $233.67 before paring gains to end the session just up by 18.49 percent at $223.10 apiece.
In a press release, Applied Optoelectronics Inc. (NASDAQ:AAOI) said that it would supply Mediacom with three products from its broadband networking portfolio, including the QuantumLink Remote Management and Monitoring Software, the Quantum18 MB 1.8GHz Amplifier, and the Quantum18 BLE 1.8GHz Line Extender, in line with the latter’s plans to boost its download and upload speeds for its 1 million household customers by the end of the year.
The expansion initiative is targeted to be accomplished through a distributed access architecture (DAA) with DOCSIS 4.0 technology, fiber expansion, and a whole-home Wi-Fi solution powered by eero 7 technology.
Applied Optoelectronics Inc. (NASDAQ:AAOI) said that its exclusive distribution partner, Digicomm International, has begun logistics services from its stocking distribution center in Englewood, Colorado, effective immediately.
“Mediacom is on the fast track to prove what the power of DOCSIS 4.0 can do to transform the future of broadband,” said Todd McCrum, Senior Vice President and General Manager for Applied Optoelectronics Inc.’s (NASDAQ:AAOI) Broadband Access Business.
“Together, we are establishing a new model for building edge-led architecture that can scale to deliver gigabit speeds for a fiber-like performance over existing coax, giving Mediacom subscribers the internet experience they want today, without waiting for full fiber rollouts,” he noted.
4. Tower Semiconductor Ltd. (NASDAQ:TSEM)
Tower Semiconductor soared to a new 25-year high on Wednesday, after clinching more than $1.3 billion in silicon photonics (sipho) supply deals and posting a stellar earnings performance in the first quarter of the year.
In intra-day trading, the stock climbed to its highest price of $271.92 before trimming gains to finish the session just up by 22.61 percent at $270.77 apiece.
In an updated report, Tower Semiconductor Ltd. (NASDAQ:TSEM) said that it signed contracts with its largest customers for the supply of silicon photonics, amounting to $1.3 billion, of which $290 million was prepaid for capacity reservation.
The rally was further helped by announcements that the commitments were further reinforced by an even larger contractual wafer deal for 2028, for which additional associated prepayments are due by January 2027.
In line with the demand growth, Tower Semiconductor Ltd. (NASDAQ:TSEM) is ramping up its worldwide multi-fab SiPho capacity to achieve the targeted model of $2.8 billion revenue with $750 million net profit in 2028.
In other news, Tower Semiconductor Ltd. (NASDAQ:TSEM) reported a stellar earnings performance in the first quarter of the year, with attributable net profits surging by 62.5 percent to $65 million from only $40 million in the same period last year. Revenues grew by 15 percent to $413.6 million from $358.17 million year-on-year.
3. VNET Group Inc. (NASDAQ:VNET)
VNET Group soared by 25.06 percent on Wednesday to end at $11.28 apiece, as investors repositioned portfolios ahead of the results of its earnings performance in the first quarter of the year.
In a notice to investors, VNET Group Inc. (NASDAQ:VNET) said that it is scheduled to report its financial and operating highlights before market open on Tuesday, March 26. A conference call will be held to elaborate on the results.
In other news, VNET Group Inc. (NASDAQ:VNET) announced the entry of two strategic investors—PJ Millennium I Ltd. and PJ Millennium II Ltd.—following their successful acquisition of a 38.1 percent stake in the company for a total of $942 million.
The transaction covered 650.4 million Class A shares at a price of $1.4486 apiece, and was acquired from Success Flow International Investment Ltd. and Choice Faith Group Holdings Ltd.
In line with the investment, VNET Group Inc. (NASDAQ:VNET) sealed an investor rights agreement with the two firms, as well as a voting and consortium agreement with Chairman and interim CEO Josh Sheng Chen, both of which will become effective upon the closing of the proposed investment.
“We are pleased to welcome our new strategic investors and greatly appreciate their strong support for VNET and our long-term vision. Looking ahead, we will work closely with our strategic partners to deepen collaboration across technology and supply chains, and to jointly advance original, end-to-end innovation across the next generation of the AIDC industry,” Chen said.
2. Ouster Inc. (NASDAQ:OUST)
Ouster extended its winning streak to a fourth consecutive day on Wednesday, climbing 26.09 percent to close at $34.17 apiece, as investors cheered the qualification of its Rev8 OS digital lidar sensor family on Nvidia Corp.’s open-reference platform for autonomous vehicles.
In a statement, Ouster Inc. (NASDAQ:OUST) said that its Rev8 OS met the requirements of Nvidia DRIVE Hyperion’s sensor qualification process, which could support automotive developers from their initial development to full-scale deployment, and aid with high-quality data necessary to both train next-generation world models and enable safer autonomous navigation at scale, among others.
“Ouster’s work with NVIDIA DRIVE centers on providing the high-performance sensing required for the next generation of autonomous vehicles,” Ouster Inc. (NASDAQ:OUST) CEO Angus Pacala said.
“With Rev8 compatibility on the NVIDIA DRIVE Hyperion platform, automotive customers around the world can benefit from superior range and resolution, along with the world’s first native color lidar, to enhance safety and performance in the real world,” he noted.
Ouster Inc. (NASDAQ:OUST) is a leader in sensing and perception for Physical AI across industrial, robotics, automotive, and smart infrastructure. In the first quarter of the year, it narrowed its net loss by 20.6 percent to $17.46 million from $22 million in the same period last year. Total revenues increased by 49 percent to $48.58 million from $32.6 million year-on-year.
1. Fervo Energy Company (NASDAQ:FRVO)
Fervo Energy soared by 35.33 percent in its first day as a publicly listed company, thanks to the strong investor appetite for stocks riding the AI wave.
During the session, the stock opened the day at $36, marking an immediate jump of 33.3 percent from its initial public offering (IPO) price of $27, and soared by as much as 42 percent at $38.40 apiece.
The rally was primarily driven by the continued demand growth for energy services from the rapidly growing artificial intelligence sector.
Fervo Energy Company (NASDAQ:FRVO) successfully raised $1.89 billion in fresh funds from the sale of 70 million shares, propelling its valuation to more than $10 billion.
According to the company, it intends to use the net proceeds for general corporate purposes, including capital expenditures, continued development of its GeoClusters, and expansion of its land holdings portfolio, while the balance will be used for working capital and other operating expenses.
Fervo Energy Company (NASDAQ:FRVO) is a startup energy company engaged in the development of geothermal power sources. It is underway with the development of the Cape Station in Utah, which is targeted to become the world’s largest next-generation geothermal project, with power already set to be supplied to Southern California Edison and Shell, among others.
While we acknowledge the potential of FRVO 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 FRVO and that has 100x upside potential, check out our report about the cheapest AI stock.
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