Lackluster Tuesday? Not for These 10 Stocks on Sky High

2. Kingsoft Cloud Holdings Limited (NASDAQ:KC)

Kingsoft rallied for a third straight day on Tuesday, jumping 18.73 percent to close at $15.09 apiece as investors gobbled up shares following the US government’s easing of chip exports restrictions to China.

Kingsoft Cloud Holdings Limited (NASDAQ:KC) traded higher alongside its Chinese counterparts, spurring confidence that the move will improve trade relations between the US and China.

Meanwhile, reports surged that Jensen Huang, CEO of Nvidia Corp., sat down with Xiaomi and Kingsoft Cloud Holdings Limited (NASDAQ:KC) Chairman Lei Jun recently, albeit the topics discussed have not been divulged.

Additionally, reports also claimed that several Chinese internet companies and cloud service providers have been testing out and placing orders for Nvidia’s B30 chips.

Investment firm CLSA maintained an “outperform” rating on Kingsoft Cloud Holdings Limited (NASDAQ:KC) with a price target of $17 apiece, or a 12.6-percent upside from its latest closing price.

1. MP Materials Corp. (NYSE:MP)

MP Materials rallied for a second day on Tuesday to hit a new all-time high after clinching a $500-million deal with technology giant Apple Inc.

At intra-day trading, MP Materials Corp. (NYSE:MP) soared to a new 52-week high of $62.87 before paring gains to end the day at $58.22 apiece, or 20 percent higher than the previous day’s close.

In a statement on the same day, Apple pledged to purchase US-made rare earth magnets developed at MP Materials Corp.’s (NYSE:MP) flagship Independence facility in Fort Worth, Texas, and that it would work with MP Materials Corp. (NYSE:MP) to build out the state-of-the-art Texas factory with a series of neodymium magnet manufacturing lines specifically designed for Apple products.

The new equipment and technical capacity will allow MP Materials to significantly boost its overall production.

Once built, the produced magnets will be shipped across the country and all over the world.

Apple said the partnership forms part of its $500-billion expansion plan in the US over the next four years.

While we acknowledge the potential of MP 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 MP and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.