2 AI Stocks With Record Breaking Rallies: Can They Continue?

September has been a record-breaking month for stocks as the S&P 500 hit new all-time highs last week following the Federal Reserve’s first rate cut since 2024. In fact, it’s hard to find an asset that isn’t near a record: stocks, gold, cryptocurrencies, housing, and trading cards have all soared to new heights lately.

Even Pokémon cards are having a renaissance moment, so no one would blame you for scouring your children’s rooms for a rare Charizard.

When markets are rallying almost every day, it’s tempting to take on extra risk in search of speculative opportunities with outsized gain potential. Over the last month, positive catalysts have triggered massive rallies in the two stocks we’re discussing today.

And as you might’ve guessed, an investment theme links them: artificial intelligence.

Nebius Group: Microsoft Deal Solidifies Strategic Pivot

AI's insatiable appetite for energy is one of the worst-kept secrets in the tech sector. If you’ve noticed your electricity bills on the rise lately, you can place part of the blame on the ever-growing needs of AI data centers. 

Data centers suck up almost as much power as they do capex, and Nebius Group N.V. (NASDAQ: NBIS) has emerged as a ‘picks and shovels’ play on this trend.

NBIS is a specialized AI infrastructure company that has developed a “neo cloud” platform and provides computing solutions. The company operates highly optimized data centers (equipped with the latest NVIDIA GPUs) and rents them to AI hyperscalers.

Nebius wants to be a sleeker, more nimble competitor to dominant cloud platforms like Amazon Web Services, and its recent deal with Microsoft Corp. (NASDAQ: MSFT) has solidified the company’s staying power.

On September 9, Nebius inked an enterprise-altering deal with Microsoft worth $17.4 billion, with an option for an additional $2 billion if more compute is needed.

The deal was worth more than the entire market cap of NBIS at the time, and shares surged more than 47% in the aftermath of the news. Nebius now has a firm place amongst the major AI infrastructure providers.

The company’s Q2 2025 earnings release and favorable technical tailwinds provided several indications that the stock was poised to take off. The stock began its uptrend by breaking above the 50-day and 200-day SMAs in June, followed by a Golden Cross, which occurred when those two indicators flipped their positions. 

On August 7, Q2 EPS and revenue figures both came in well above expectations, and the executives raised full-year annualized run rate (ARR) guidance to a range of $900 million to $1.1 billion. NBIS is up more than 120% in the last three months, and now has technical support along the 50-day SMA.

The risk remains high here, as a significant portion of the company’s revenue now depends on a single agreement. However, pullbacks can likely be bought with strength as long as support at the 50-day SMA holds.

Hut 8: Expanding Beyond Bitcoin Mining into Digital Infrastructure

Hut 8 Corp. (NASDAQ: HUT) had humble beginnings as a small-cap Canadian Bitcoin miner that went public in 2018. The stock nearly reached $80 per share during the 2021 crypto rally, but faded back under $4 by the end of 2022.

Hut 8 is back again in 2025, but this time its rally is due to an AI infrastructure pivot similar to that of the Nebius Group. While there’s no multi-billion-dollar deal with a Magnificent 7 company here, the company has reformed itself as a diversified AI infrastructure platform, and its revenue rebound is gathering attention from investors.

Hut 8 reported Q2 2025 earnings before the market opened on August 7 and reported a narrower-than-expected EPS loss (14-cent loss per share vs. 15 cents projected). While revenue slightly missed expectations, the turnaround from the previous year has been impressive.

The $41.3 million in quarterly revenue was a 17% year-over-year (YOY) gain, and the company spun off its volatile Bitcoin mining operation to focus on stable, long-term energy contracts.

The roadmap for growth is already taking shape, with four new U.S. sites announced and a five-year deal signed with the Ontario Independent Electricity System Operator (IESO). Plus, it still has more than $200 million worth of digital assets in its treasury.

Since its Q2 earnings release, the stock has received four different analyst price target boosts, including one from Roth Capital to $60, which would represent more than a 50% increase from current levels. Thanks to these fundamental factors, shares are up more than 60% in the last month alone, but technical signals are painting a murkier picture. 

A Golden Cross in August ignited the rally and pushed the stock above its previous support level at the 50-day SMA. However, shares could now be getting overextended.

The last few sessions have been volatile, and now the Relative Strength Index (RSI) is starting to lean into Overbought territory. It may be wise to wait for a pullback before investing new capital in HUT shares.

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