Last Week 3 Best Performing AI Stocks

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Weekly Stock Analysis

The top three performing stocks from Friday, 3rd January, to Friday, 10th January, are Cerence Inc. (CRNC), Micron Technology Inc. (MU), and Celestica Inc. (CLS). These companies showcased notable momentum, driven by advancements in automotive AI solutions, memory and storage technologies, and electronics manufacturing services.

Below is a summary of their key performance metrics.

Metrics Summary

*The “AI Stack” represents the essential components and layers required to build, deploy, and maintain AI systems, from infrastructure to applications. See our Guide to AI Stocks for further explanation. Data source Finviz, Stock Analysis.

_{Disclaimer - This content is provided for informational purposes only and does not constitute investment advice, personal recommendations, or an invitation to engage in any investment activity. The information presented is derived from publicly available sources and should not be solely relied upon for making investment decisions. Always consult with a qualified financial professional before making investment choices.}

Stock 1: Cerence Inc. (CRNC)

What the Company Does

Cerence Inc. specialises in AI-powered virtual assistants for the automotive industry. Its solutions enable natural, conversational interactions between drivers and their vehicles, enhancing user experience and safety. Cerence's technology is integrated into millions of cars worldwide, providing voice recognition, gesture control, and other AI-driven functionalities.

Its Role in AI and Position in the AI Stack

Cerence operates within the AI Development & Applications layer of the AI stack, focusing on automotive AI solutions. Its advanced voice recognition and natural language understanding technologies facilitate seamless human-machine interactions in vehicles, contributing to the development of intelligent, connected cars.

Why the Stock Moved Last Week

Cerence's stock exhibited significant volatility last week, closing at $15.15 on Friday, January 10th. On January 3rd, the stock opened at $10.79 and surged to an intraday high of $19.89. This sharp movement reflected heightened investor enthusiasm following Cerence’s announcement of an expanded collaboration with NVIDIA to advance the CaLLM™ family of language models. The surge appeared primarily “news-driven,” underscoring Cerence's pivotal role in enhancing AI capabilities in the automotive sector. However, broader market volatility and profit-taking led to a sharp decline as the week progressed.

Growth Metrics & Price Target

• Sales Growth Estimates: 2025: -25%, 2026: 13%

• Earnings Growth Estimates: The company remains loss making, but it is expected to be profitable in 2026.

• Analysts’ Average Price Target: $7.20

• Analysts’ Consensus Rating: Hold

Technical View

After consolidating and moving sideways for a few weeks, CRNC's stock experienced a substantial breakout on Friday, January 3rd, surging well above key moving averages with high trading volume. However, the stock quickly retraced much of its gains, reflecting heightened volatility throughout the week. This sharp movement underscores the stock’s susceptibility to rapid price swings.

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Stock 2: Micron Technology Inc. (MU)

What the Company Does

Micron Technology Inc. is a leading global manufacturer of memory and storage solutions, including DRAM, NAND, and NOR Flash memory. Their products are essential components in a wide range of computing, networking, and mobile applications, enabling efficient data storage and processing across various industries.

Its Role in AI and Position in the AI Stack

Micron operates within the Hardware & Infrastructure layer of the AI stack. Their high-performance memory and storage solutions are critical for handling the vast amounts of data processed in AI applications, supporting the computational needs of AI workloads in data centers, edge devices, and consumer electronics.

Why the Stock Moved Last Week

Micron's stock saw a notable increase of 14% last week, driven by growing demand for memory products essential for AI and data centre applications. While broader market optimism surrounding AI-driven growth and Microsoft's $80 billion AI investment may have further bolstered investor sentiment, Micron's significant rise reflects its strategic focus and advancements in cutting-edge memory technology.

Growth Metrics & Price Target

• Sales Growth Estimates: 2025: 56%, 2026: 21%

• Earnings Growth Estimates: 2025: 1,190%, 2026: 48%

• Analysts’ Average Price Target: $131.16

• Analysts’ Consensus Rating: Strong Buy

Technical View

Micron’s stock is currently trading around its key moving averages but still above the 200SMA. The stock has been stuck in a range between $85 and $114 over the past four months, indicating a period of consolidation. This lack of upward momentum suggests that investors may be awaiting clearer signals or catalysts before the stock breaks out of its current range.

Stock 3: Celestica Inc. (CLS)

What the Company Does

Celestica Inc. is a global provider of electronics manufacturing services (EMS) and supply chain solutions. They offer a broad range of services, including design and engineering, manufacturing, and after-market support, serving industries such as aerospace, defence, industrial, and healthcare.

Its Role in AI and Position in the AI Stack

Celestica contributes to the AI ecosystem by providing manufacturing and design services for AI hardware components. Their expertise in producing complex electronic systems supports the development and deployment of AI infrastructure, positioning them within the Hardware & Infrastructure layer of the AI stack.

Why the Stock Moved Last Week

Celestica's stock has shown strong momentum in recent months, driven by its growth in AI-related sectors. As a top-two ODM (Original Design Manufacturer) supplier of network switches to major hyperscalers, Celestica has greatly benefited from rising demand in this market. Additionally, the company is well-positioned to capitalise on opportunities stemming from Microsoft’s $80 billion investment in AI-enabled data centres

Growth Metrics & Price Target

• Sales Growth Estimates: 2025E: 9%, 2026E: 12%

• Earnings Growth Estimates: 2025E: 15%, 2026E: 12%

• Analysts’ Average Price Target: $87.89

• Analysts’ Consensus Rating: Strong Buy

Technical View

CLS's stock is trading above its key moving averages, reflecting positive momentum and a bullish trend. While the stock has been consolidating over the past few weeks amidst broader market volatility, it has demonstrated relative strength compared to the overall market, signalling investor confidence.

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^{Data Sources - Google Finance, Stock Analysis, Yahoo Finance, Finviz. The 1 Week performance data is from Thursday closing price to the following Friday closing price.}

_{Disclaimer - The information contained on this site does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice.}