AI Infrastructure Stocks Surge: MXL +29.5%, CNC +28.1% as EPS Revisions Spark Rally

MaxLinear jumped 29.5% after its Q1 2026 earnings beat expectations with $137.2 million in revenue (up 43% YoY) and a 136% surge in optical data center revenue, prompting analysts at Needham and Roth Capital to raise their ratings on April 24.

Analysts at Needham and Roth Capital raised their ratings and price targets on MaxLinear after Q1 results showed strong AI-linked demand, though the stock has already risen 29.5% from its detection price of $60.32.

MaxLinear's surge was driven by Q1 results showing 43% YoY revenue growth to $137.2 million and a 136% year-over-year increase in its optical data center business, which analysts linked to AI infrastructure demand.

Centene jumped 28.1% after Bank of America double-upgraded the stock to Buy from Underperform with a $60 price target on April 29, citing confidence that Medicaid margins are bottoming and set to recover from 2026 onward.

BofA upgraded Centene to Buy with a $60 price target, estimating normalized earnings power of around $12 per share versus its 2026 estimate of $3.40, suggesting significant upside if Medicaid margins recover.

Centene's surge was driven by BofA's double upgrade citing Medicaid margin recovery ahead, following Q1 results that showed adjusted EPS of $3.37 and a raised full-year 2026 adjusted EPS outlook to greater than $3.40.

Seagate jumped 23.9% after raising its long-term revenue growth outlook to at least 20% annually and reporting its tenth consecutive quarter of cloud customer growth, with nearline storage supply nearly fully allocated through 2027.

Seagate's outlook raise to at least 20% annual revenue growth and near fully-allocated supply through 2027 suggests sustained demand tailwinds from hyperscaler AI spending, though the stock has gained 23.9% since late April.

Seagate's surge was driven by strong Q1 results and a raised long-term outlook to at least 20% annual revenue growth, as hyperscalers' increased AI infrastructure spending drove demand for data storage and memory chips.

Bloom Energy jumped 23% after reporting record Q1 revenue of $751.1 million with adjusted EPS of $0.44 versus estimates of $0.09, and Oracle selected the company as sole power provider for its Project Jupiter facility in New Mexico.

Bloom Energy raised its 2026 revenue guidance to $3.4B-$3.8B and gross margin outlook to 32%-34%, with the stock more than doubling year-to-date as AI-driven power demand for data centers accelerates.

Bloom Energy's surge was driven by a record Q1 showing $751.1M in revenue and $0.44 adjusted EPS, Oracle's selection as sole power provider for Project Jupiter, and raised full-year guidance citing accelerating AI power demand.

Axsome jumped 21.6% after the FDA approved Auvelity for Alzheimer's disease agitation and raised peak sales guidance to at least $8 billion, with Q1 revenue of $191.2 million up 57% year-over-year.

Axsome raised its Auvelity peak sales guidance to $8 billion and expanded its sales force to 630 representatives, with the stock up 84% over the past 12 months following the FDA approval for Alzheimer's agitation.

Axsome's surge was driven by FDA approval of Auvelity for Alzheimer's disease agitation, a Q1 revenue beat at $191.2M (+57% YoY), and an raised peak sales guidance to at least $8 billion for the franchise.