In this article, we deep dive into the 5 stocks that left Wall Street in the dust on Monday. For a deeper discussion and an extended list, please see 10 Stocks With Easy Double-Digit Returns.
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5. Applied Optoelectronics Inc. (NASDAQ:AAOI)
Applied Optoelectronics snapped a three-day losing streak on Monday, climbing 24.14 percent to close at $184.90 apiece, after earning buy and hold recommendations from five investment firms.
Last Friday, Applied Optoelectronics Inc. (NASDAQ:AAOI) received buy recommendations from Rosenblatt Securities, Needham, and Raymond James, with price targets between $160 and $220.
Rosenblatt gave the highest price target of $220, marking a 57 percent upgrade from its previous target of $140. Needham assigned a new price assessment of $190, higher by 137 percent than its earlier price assessment of $90.
Raymond James, on the other hand, gave a $160 price target, an upgrade from the $72.5 prior, but was markedly lower than the stock’s latest closing price.
On the same day, B. Riley and Northland Securities issued a “hold” recommendation for the stock, alongside price targets of $129 and $57.5, respectively.
In other news, Applied Optoelectronics Inc. (NASDAQ:AAOI) posted a 55.7 percent expansion in its net loss attributable to shareholders in the first quarter of the year, at $14.28 million versus $9.17 million in the same period last year.
However, revenues increased by 51 percent to $151 million from $99.8 million year-on-year.
For the second quarter, Applied Optoelectronics Inc. (NASDAQ:AAOI) is targeting revenues of $180 million to $198 million, or an implied growth of 75 percent to 92 percent from the $103 million in the same period a year earlier.
4. Navitas Semiconductor Corp. (NASDAQ:NVTS)
Navitas Semiconductor soared to a fresh all-time high on Monday, as investors cheered an Indian semiconductor maker’s successful launch of a gallium nitride (GaN) power device family developed using the former’s GaN technology.
In intra-day trading, the stock climbed to its highest price of $23.82 before trimming gains to end the session just up by 24.45 percent at $22.65 apiece.
In a statement, Cyient Semiconductors announced that it developed seven new GaN power devices for the Indian market, thanks to Navitas Semiconductor Corp.’s (NASDAQ:NVTS) GaN technology.
It said that the devices are aimed at addressing the rapidly growing demand for high-efficiency, high-power-density solutions across AI data centers, telecommunications, consumer fast charging, industrial power systems, and e-mobility platforms.
The launch was in line with a strategic collaboration between Navitas Semiconductor Corp. (NASDAQ:NVTS) and Cyient in December 2025, under which the latter will license the former’s GaN technology for use in India, accelerating the adoption of high‑performance GaN solutions across a broad range of markets.
In addition, Cyient will serve as a second source for select Navitas Semiconductor Corp. (NASDAQ:NVTS) GaN devices already in mass production and strengthening supply chain resilience.
3. Liquidia Corp. (NASDAQ:LQDA)
Liquidia climbed to a fresh all-time high on Monday, as investors took heart from its stellar earnings performance in the first quarter of the year, thanks to strong sales from its pulmonary hypertension treatment, Yutrepia.
In intra-day trading, the stock surged to its highest price of $53.93 before trimming gains to end the session just up by 25.35 percent at $53.13 apiece.
In an updated report, Liquidia Corp. (NASDAQ:LQDA) said that it swung to a net income of $52.86 million in the first quarter of the year from a $38.4 million net loss in the same period in 2025, marking its third quarter of swing to profitability, amid a strong uptake for Yutrepia.
Total revenues soared by 4,328 percent to $132.86 million from only $3.12 million in the same comparable period. Of the total, product sales amounted to $129.9 million, while service revenues finished at $3 million.
As of April 30, 2026, Liquidia Corp. (NASDAQ:LQDA) said that Yutrepia has received more than 4,500 unique patient prescriptions since its launch in June 2025, with prescription-to-start conversion remaining strong at 85 percent.
“Yutrepia continued to demonstrate sustained uptake in pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease (PH-ILD), consistent with its growing adoption as the preferred inhaled prostacyclin of choice. Having initiated additional Phase 4 studies of Yutrepia and our pivotal Phase 3 Re-Spire study of L606, our focus in 2026 is on making the full benefit of prostacyclin therapy available to more patients who need it, across a broader set of serious pulmonary and vascular diseases where high unmet need remains prevalent,” said Liquidia Corp. (NASDAQ:LQDA) CEO Roger Jeffs.
2. POET Technologies Inc. (NASDAQ:POET)
POET Technologies rallied for a second day on Monday, climbing 27.09 percent to close at $13.90 apiece, as investors resumed buying positions ahead of the results of its earnings performance this week.
Based on its historical reporting dates, POET Technologies Inc. (NASDAQ:POET) is scheduled to release its financial and operating highlights for the first quarter of the year on Wednesday, May 13.
The rally was primarily boosted by announcements late last month that it secured a new $5 million order from an unnamed technology firm for its optical engines and light products, despite a cancellation of an order from one of its major customers over an alleged confidentiality breach.
It can be recalled that POET Technologies Inc. (NASDAQ:POET) Chief Finance Officer Thomas Mika confirmed in an interview earlier that the company secured orders from Marvell Technology, which is expected to boost its total orders to more than $5 million for this year. Deliveries, he said, were supposed to begin in the third quarter of the year.
Marvell’s cancellation prompted an investigation by shareholder law firms to probe into potential securities violations.
“The company remains focused on executing its strategic priorities and advancing product development within the AI and optical networking markets to meet increasing demand,” POET Technologies Inc. (NASDAQ:POET) assured.
1. Babcock & Wilcox Enterprises Inc. (NYSE:BW)
Babcock & Wilcox soared to a new seven-year high on Monday, as investors cheered the company’s strong revenues for the first quarter of the year, as well as its upbeat outlook for its business, saying that the booming demand from AI data centers has “set the course for future growth.”
In intra-day trading, Babcock & Wilcox Enterprises Inc. (NYSE:BW) climbed to its highest price of $18.99 before trimming gains to finish the session just up by 30.06 percent at $18.91 apiece.
In an updated report, the company grew its revenues by 44 percent to $214.4 million from only $148.6 million in the same period last year, beating Wall Street consensus, on the back of strong interest from new AI data centers and hyperscaler customers.
However, net loss attributable to shareholders expanded by 249 percent to $76.9 million from only $22 million in the same comparable period.
Commenting on the performance, Babcock & Wilcox Enterprises Inc. (NYSE:BW) Chairman and CEO Kenneth Young said that the results reflect a strong global demand for the company’s technologies, combined with the increased demand for power generation, which gives a solid foundation for continued growth.
“Our global pipeline increased by 17 percent and now exceeds $14 billion in project opportunities due to this surging demand,” he noted.
It can be recalled that Babcock & Wilcox Enterprises Inc. (NYSE:BW) earlier this year bagged a $2.4-billion power generation project from Base Electron—an independent power producer backed by Applied Digital Corp.—which aims to supply electricity to the latter’s AI factory campuses. The permitting process for the project has officially kicked off.
While we acknowledge the potential of BW 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 BW and that has 100x upside potential, check out our report about the cheapest AI stock.
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