The Vanguard Russell 2000 ETF is outperforming the S&P 500 with an 18% year-to-date gain, driven by domestic-focused small-cap companies benefiting from U.S. government policies and AI infrastructure demand. However, rising inflation and anticipated interest rate hikes pose a significant risk, as 32% of Russell 2000 companies carry floating-rate debt that will become more expensive, potentially hampering their growth and earnings.

The article recommends two higher-growth energy stocks positioned to benefit from global decarbonization: Nextpower (NXT), the world's largest solar tracker producer expanding into adjacent markets, and BWX Technologies (BWXT), North America's only large-scale nuclear equipment manufacturer with a growing backlog. Both companies are expected to grow revenue and EBITDA at ~12-13% CAGRs through 2027-2028, driven by AI, cloud infrastructure, and data center energy demands.

U.S. stock futures showed mixed performance on Wednesday with Dow Jones futures falling while S&P 500 and Nasdaq 100 rose. President Trump visited China with major tech leaders including Nvidia's Jensen Huang, Tesla's Elon Musk, and Apple's Tim Cook. Key movers included Nextpower surging on strong earnings, MaxCyte jumping on better-than-expected results, and Red Cat Holdings plunging after a public offering announcement. The 10-year Treasury yield stood at 4.46%, with markets pricing a 97.6% likelihood of unchanged Fed rates in June.

Nextpower (NASDAQ: NXT) reported Q4 adjusted earnings of $1.05 per share, beating the Street estimate of $0.92, with quarterly revenue of $881 million exceeding the consensus estimate of $827 million. The company announced an acquisition of Zigor Corporation's power conversion business and its U.S.-based subsidiary Apex Power to expand its inverter offerings. For fiscal 2027, Nextpower guided adjusted EPS of $4.21-$4.59 (below the $4.76 analyst estimate) and raised revenue outlook to $3.8-$4.1 billion. Stock rose 10.22% to $138.57 in extended trading.

The article recommends two renewable energy stocks for long-term investors: Nextpower, a solar infrastructure company offering trackers, balance-of-systems solutions, and AI software, and Brookfield Renewable, a diversified green energy company with hydroelectric, wind, and solar projects. Both are positioned to benefit from the global renewable energy market's expected 14.7% CAGR growth through 2033, driven by decarbonization initiatives and expanding cloud/AI markets.

Despite regulatory headwinds from the One Big Beautiful Bill Act cutting renewable tax breaks, clean energy stocks have thrived due to improved solar technology, preferential treatment for nuclear and geothermal energy, and surging demand from AI data centers. Three stocks showing bullish moving average signals are highlighted: Nextpower (solar tracking systems with $5B backlog), Ormat Technologies (geothermal with data center exposure), and GE Verona (diversified renewables with strong fundamentals).

Several large-cap technology and energy stocks rallied last week driven by AI momentum, EV optimism, and data-center demand. Top gainers included Nebius (up 29.59% after NVIDIA partnership), NIO (up 21.12% on strong earnings and HSBC upgrade), Micron (up 16.99% on AI collaboration), SanDisk (up 27.60%), and others in the semiconductor and clean energy sectors.

Nextpower (formerly Nextracker) has expanded beyond its core solar tracking technology through acquisitions to offer structural and electrical components for solar projects. The company reported strong Q3 2026 results with 34% revenue growth to $909M and a $5B backlog. While well-positioned in the growing clean energy market with reasonable valuation (P/E of 27), investors should monitor execution risks from integrating eight recent acquisitions. The stock may appeal to risk-tolerant growth investors betting on the renewable energy transition.

Nextpower (NASDAQ: NXT) reported better-than-expected Q3 results with 34% YoY revenue growth to $909M and raised FY26 guidance. KeyBanc upgraded the stock to Overweight with a $142 price target, citing strong profitability, U.S. market dominance, and expansion opportunities beyond traditional solar trackers. The company also announced a $500M share buyback program and a joint venture supplying 2.25 GW of solar tracking systems to Saudi Arabia's Bisha Solar project.

Nextpower, formerly Nextracker, has quadrupled in value since its 2023 IPO by dominating the solar tracking systems market with 26% market share. The company is expanding beyond solar trackers into a diversified energy technology platform, including AI, robotics, and power conversion systems. With revenue expected to grow at 14% CAGR through 2028 and trading at 15x next year's adjusted EBITDA, analysts believe the stock could appreciate as investors reassess it as a higher-growth energy technology company rather than a cyclical solar play.

Solar stocks delivered impressive gains in 2025, with the Invesco Solar ETF surging 48% despite initial policy uncertainty. As the sector enters 2026 with improved sentiment and clearer policy visibility, NextPower and First Solar are highlighted as two leading companies positioned to capitalize on continued momentum, though key technical support levels will be critical to watch.

Nextpower, a solar tracking technology company, is expanding beyond its core business into structural and electrical components. The company has a strong financial position with a $5 billion backlog and no debt, making it attractive for aggressive growth investors.