New York, May 13, 2026, 15:51 EDT
- Fervo Energy surged in its Nasdaq debut, following an upsized IPO that brought in $1.89 billion.
- Investors pushed Nebius, Ford, Akamai, and Wolfspeed higher, chasing after anything tied to AI infrastructure.
- Wix and Dynatrace shares slid as investors zeroed in on costs, margins, and what the companies had to say about the outlook after their earnings reports.
Fervo Energy lit up the Nasdaq on its first day, surging 33%. That rally pushed the Houston-based geothermal company’s market value to $10.21 billion. Investors still chased shares tied to the AI infrastructure and data-center boom, undeterred by inflation data that cast a tougher light on rates.
The tape pulled in opposite directions. Gains in chip stocks and tech megacaps sent the S&P 500 and Nasdaq higher, but the Dow trailed behind after producer prices climbed 1.4% in April—the sharpest single-month increase in four years, according to Reuters. Year-over-year, the Producer Price Index was up 6.0%, pointing to persistent pricing pressures for goods and services.
Hopes for rate cuts dimmed again. On Polymarket, traders pegged the odds of no Federal Reserve rate cuts in 2026 at 69%. Over at Kalshi’s Fed markets, “exactly 0 cuts” was the dominant bet for 2026, sitting around 63%. Polymarket
Fervo pulled in $1.89 billion after pricing 70 million shares at $27 apiece, topping the range it had marketed. Shares started trading at $36. Speaking with Reuters, CEO Tim Latimer pointed to “growing awareness” in Washington for geothermal’s potential. Fervo reports a potential contracted revenue backlog of around $7.2 billion, stemming from its power purchase agreements. Reuters
Nebius Group surged 18.7% to $212.65 after the AI cloud firm posted first-quarter revenue of $399 million—an eye-popping 684% jump from a year ago—and announced it’s locked in as much as 1.2 gigawatts of power and land for a planned Pennsylvania AI factory, a data-center complex designed to handle training and running AI models.
Shares of Ford surged 15.6% to $13.87, as investors zeroed in on Ford Energy—its fresh battery-storage division targeting utilities, data centers, and industrial users. Morgan Stanley, according to Barron’s, called the unit undervalued and flagged Ford as the standout among automakers for the session, outgunning rivals like General Motors, Stellantis, and Tesla.
The AI-infrastructure rally pulled up Akamai, Wolfspeed, and Coherent. Shares of Akamai jumped roughly 10.2% after Bank of America’s Tal Liani boosted his rating to Buy, citing a fresh cloud-infrastructure agreement with Anthropic. Wolfspeed surged about 18.8% following a positive mention from Citrini Research, which called it a key power-chip winner as data-center demand grows. Coherent climbed around 8.5%.
Investors picked up shares in chipmakers and China tech plays. Micron added roughly 5.3%. Nvidia advanced 2.6%. Alibaba’s U.S. shares jumped 8.8% after the Chinese e-commerce giant reported a 38% gain in cloud revenue. Executives insisted AI bets were bearing fruit, even as profits softened.
Wix shares plunged 25.7% to $56.35, the steepest drop among major names in focus. First-quarter bookings came in at $585 million, revenue reached $541 million—both higher than last year. Still, investors zeroed in on spending tied to AI and new products. CEO Avishai Abrahami told analysts he’s still confident about Wix’s “market positioning.” GlobeNewswire
Dynatrace dropped roughly 11.7%, despite topping estimates for both earnings and revenue in its fiscal fourth quarter. Traders zeroed in on annual recurring revenue figures alongside a mixed outlook for fiscal 2027—underscoring that for software names, clear guidance remains critical as AI spending continues to soak up capital.
There’s a risk that the AI and power stocks fueling recent gains could get hit if inflation keeps rates up, or if companies can’t push higher costs onto customers. Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest Wealth Management, flagged the danger of “margin compression” when producer prices run hot and firms can’t lift prices. Meanwhile, Jim Baird, chief investment officer at Plante Moran Financial Advisors, pointed out investors are juggling “two significant catalysts”: strong earnings and the threat of inflation. Reuters
At this point, investors continue to favor companies touting a direct tie to AI compute, grid power, or data-center capacity. On Wednesday, that preference was clear—stocks tied to geothermal power, AI cloud, and battery storage caught buyers’ attention. On the flip side, software firms facing cost scrutiny got passed over.
