The Biggest Stock Winners of May 2026 — and the Breakout Plays to Watch Next Week

TradingKey - RXT up 165%+ in May on AI infrastructure partnerships. INOD triple-digit gains on LLM data contracts. Energy and defence surge on Iran friction. Next week: NVDA earnings, WMT, retail sales.

While the S&P 500 and Nasdaq 100 hover near record peaks, May 2026’s true highlights have come from high-beta stocks benefiting from the AI infrastructure buildout and the geopolitical energy premium. Shares of Rackspace Technology (RXT) have climbed over 165%, Innodata (INOD) has delivered triple-digit gains in May, and oil has climbed back toward $105 as fraying US-Iran relations keep the Middle East on edge. The question heading into next week is which trades will continue to run, and which new trade candidates are setting up?

NVIDIA will release Q1 earnings May 20, Walmart reports May 21, and there will be a retail sales report on Thursday. This could be the catalyst that continues the run in these names or it could precipitate a major rotation. Here are some of May 2026’s biggest winners, RXT, INOD and the energy-defence trade, and why these stocks could be ready to make breakout moves next week:

May 2026’s biggest winners — RXT, INOD, and the energy-defence trade

Rackspace Technology (RXT): This stock was the biggest winner in May, surging over 165% in early May on news of hyperscaler partnerships and AI infrastructure capacity expansion. Strong Q1 results and an upgraded full-year outlook resulted in a large short-covering and institutional buy event. RXT offers a small and highly volatile way to own this same AI infrastructure buildout driving names like NVDA, CSCO and AMD, with high-beta upside from a smaller market cap and a direct line to hyperscaler spend.

Rackspace Technology (RXT) Price Chart - Source: Tradingview

Analysts have upgraded RXT to Buy with prices targets above $15. The stock is in a consolidation move above the 50-day moving average on higher-than-average up-day volume. The next price target is $12 to $13 and higher in the $15 to $18 range.

Innodata (INOD): This name has delivered triple-digit gains in May. Innodata was a key data annotation and model training service provider for AI large language model development. Stock price is trading at $94.22 on the INOD 4H chart, which is down $1.86 or -1.93% from the previous day's close. Green impulse candles have blown away the 1.0 Fib extension ($44.61) as well as multiple swing high levels, validating explosive bullish continuation trend that has developed since the $44 price base. The bullish trend has been consolidated in the current price range above the blue moving average (MA) dynamic support at $79 to $87 price range as well as the red MA trailing up as price resistance at $97.91.

Innodata (INOD) Price Chart - Source: Tradingview

The recent price pullback in the $79 to $88 price zone was supported by the 0.382 to 0.5 Fib retracement levels ($87.72 to $79.49 price range), which allowed the measured breakout in the stock price trend. Key price resistance levels to watch are at $97.81 and $114.37 (0.0 price Fib extension), while the key price support levels are clustered in the $87.72 to $79.49 price range.

Longs can buy the stock price above $96.50 targeting the resistance level at $97.81 to $114.37 with short position below the $87.60 price level.

Energy and defence: Oil markets have been a geopolitical trade this year. Fraying US-Iran relations, with stories about the delayed implementation of a ceasefire and ultimatums issued by the US and Iran, mean oil remains in a risk premium. WTI is trading near $105. FLNC is a stock benefiting from energy storage solutions as power demand grows at AI data centres.

LMT and RTX shares rose as markets priced-in an increased defence budget for the Department of Defense. The energy sector ETF (XLE) is breaking out of a multi-month consolidation move above the 200-day moving average, suggesting the trend has confirmation beyond just headline news.

Next week’s breakout plays — setups with defined risk and clear catalysts

Nvidia’s earnings on May 20, the single most important event for tech growth stocks next week and the most important catalyst for the stocks named below, is the company’s first-quarter fiscal 2027 results. Consensus estimates have continued 60%+ growth in data centre revenue.

A beat and raise on results will reinforce that infrastructure buildouts for AI is a real, sustained trend in business and the stocks benefiting from the supply chain will continue to trade higher; a miss or a conservative guide will result in a large sell-off in the entire AI supply chain, and these names.

The binary nature of Nvidia’s next report suggests that the company’s Q1 results will be an important trigger for the market on this name. Here are some of the setups to watch that trade a higher high in Nvidia on a strong report and a lower low if NVDA misses.

Breakout plays to watch

● RXT: A breakout on higher-than-average volume above $11.50 sets a price target in the $12 to $13 area with a price target to the $15 to $18 range if the $12 to $13 levels are reached. Use a stop loss below $10.20.

● INOD: A bullish trade above the current levels of $28.50 on higher-than-average volume sets a price target in the $35 to $38 range. An RSI reading that resets from overbought levels would indicate more room higher and a higher high in INOD in the coming weeks.

● FLNC: Watch to see if energy storage and power demand growth as AI data centre infrastructure gets built-out can be a sustained trade here. A move above the recent highs on the FLNC chart could continue the current uptrend higher.

● WMT: Earnings on May 21; consider defensive plays with this stock given the resilience of the name to tariff-related inflation. WMT could also be a signpost to what’s happening with consumer demand and discretionary spending in the first quarter.

● XLE: A move above the 200-day moving average suggests more room higher in energy stocks given an improving supply and demand setup in the global oil market; consider long positions if oil remains above $100.

Which stocks rose the most in May 2026?

Gainers included Rackspace Technology (RXT), a gain of more than 165% on AI infrastructure hyperscaler partnerships and raised guidance; Innodata (INOD) on triple-digit gains from AI data annotation contracts for large-language-model developers; and the energy and defence plays Fluence Energy (FLNC), Lockheed Martin (LMT), and Raytheon (RTX) all higher, as renewed US-Iran tension kept WTI near $105 per barrel. The commonality is exposure to AI infrastructure and geopolitical risk premium.

Which stocks should I keep an eye out for breakouts for next week?

Primary setups are RXT > $11.50 targeting $12 to $13, stop $10.20; INOD > $28.50 targeting $35 to $38; FLNC on breakout of recent highs; and Walmart (WMT) earnings May 21 (defensive, tariff resilient). The gating event for all AI-adjacent setups will be Nvidia’s Q1 FY2027 earnings on May 20, where a beat or raise extends, while a miss compresses. Retail sales on Thursday will give an update on US consumer health, and the Fed under new Warsh chair.

Why are energy and defence stocks rising in May 2026?

Energy and defence has gained this month amid renewed friction in the US-Iran ceasefire. This means the risk premium from Strait of Hormuz has been priced in, with WTI near $105 per barrel. The Strait of Hormuz is the world’s most important energy choke point (it carries about 20% of oil and LNG supply), and so geopolitical scenarios become material. As for LMT and RTX, it’s the expectation of higher Pentagon outlays to deal with Middle East uncertainty, while simultaneously having to deal with the great-power competition with China. XLE has broken out of its 200-day moving average.

Bottom Line

May 2026, in a word: high beta, high conviction. RXT up 165%. INOD in the triple digits. Energy and defence riding the back of Iran premium. The trades into next week: continuation on RXT and INOD; FLNC and XLE on energy story; WMT as defensive earnings.

That said, every trade next week in the AI world is binary to Nvidia’s May 20 print. Data centre beat of 60%+, raised guidance is what gets you a run. Anything else means you can expect compression. Know the outcome before you size the position.