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Babcock & Wilcox (BW) Stock Rockets 23% on AI Data Center Power Deals and Strong Q1 Results

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Buy or Sell Navitas Semiconductor Stock in 2026? Analysts Split

NEW YORK — Shares of Babcock & Wilcox Enterprises Inc. (NYSE: BW) surged more than 23% in morning trading Monday to $17.95, extending a remarkable rally as investors rewarded the industrial company’s growing role in powering artificial intelligence data centers and its strong first-quarter performance.

Babcock & Wilcox (BW) Stock Rockets 23% on AI Data
Babcock & Wilcox (BW) Stock Rockets 23% on AI Data Center Power Deals and Strong Q1 Results

The move comes one day after the company reported first-quarter 2026 results that showed significant backlog growth, new contract wins, and raised full-year guidance, reinforcing its transformation into a key player in the energy infrastructure needed for hyperscale AI facilities.

Q1 earnings beat expectations

Babcock & Wilcox reported first-quarter revenue of $214.4 million, up 44% year-over-year, with adjusted EBITDA of $16.1 million — a 296% increase. The company highlighted a massive $2.4 billion power generation project for AI data centers and more than $21 million in new fuel-switching technology awards.

Management raised its 2026 adjusted EBITDA guidance to $80–$100 million, citing strong demand for behind-the-meter power solutions tailored to AI factory campuses. The company’s backlog reached $2.7 billion, while its total pipeline exceeded $14 billion.

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Major AI power project drives momentum

The biggest catalyst remains Babcock & Wilcox’s $2.4 billion design-build contract with Base Electron to supply 1.2 gigawatts of natural gas-fired power generation capacity for Applied Digital’s AI data centers. The project includes four 300-MW boiler and steam turbine systems, with potential for an additional 1.2 GW.

This positions the century-old boiler and power plant specialist at the center of the AI energy boom, where massive computing clusters require reliable, high-capacity power sources that the strained electrical grid often cannot provide quickly enough.

Analyst and market reaction

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Several Wall Street firms have raised price targets on BW in recent weeks, with some bullish voices now calling for $25 or higher. The stock has delivered extraordinary returns, up more than 4,400% over the past year from deeply depressed levels, though it remains volatile.

Monday’s surge came on elevated volume, with traders rotating into industrial names tied to AI infrastructure. Despite the massive run-up, some analysts argue the valuation still offers upside if the company successfully executes on its expanding backlog.

Company transformation story

Babcock & Wilcox has undergone a significant strategic shift, moving from traditional boiler services toward high-growth areas including renewable energy, fuel switching, and now large-scale power generation for data centers. The company has completed more than 150 boiler conversions and continues winning new fuel-switching awards amid baseload power demand.

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CEO Kenneth Young has emphasized the company’s ability to deliver turnkey solutions for the energy transition while capitalizing on AI-driven electricity needs. The firm’s parts and services segment also continues performing strongly.

Risks and legal overhang

The rapid rise has not been without controversy. Class action lawsuits allege misleading statements regarding the $2.4 billion contract and potential conflicts of interest. Investors with losses between November 2025 and March 2026 have until June 15 to seek lead plaintiff status.

Like many small-cap industrial names, BW remains sensitive to execution risks, project delays, and broader economic conditions. However, current momentum appears driven by tangible contract wins and improving financial metrics.

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Broader AI infrastructure theme

Babcock & Wilcox joins a growing list of companies benefiting from the enormous power requirements of AI training and inference. Data centers are projected to consume a dramatically larger share of U.S. electricity in coming years, creating opportunities for companies capable of delivering reliable generation capacity quickly.

What investors should watch

Key upcoming catalysts include progress updates on the $2.4 billion project, additional contract wins, and the Q2 earnings report. Continued strength in the parts and services business and successful execution on fuel-switching projects will also be closely monitored.

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Monday’s sharp gain reflects growing Wall Street conviction that Babcock & Wilcox is well-positioned in one of the decade’s most powerful secular trends. While volatility remains high, the company’s pivot toward AI power infrastructure has clearly captured investor imagination.

As trading continues, BW stands out as one of the more compelling industrial turnaround stories of 2026 — a legacy power equipment maker reborn as an essential player in the artificial intelligence revolution.

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Can Wembanyama Lead San Antonio Back in NBA Finals

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Jalen Brunson

NEW YORK — The 2026 NBA Finals shift back to Madison Square Garden on Wednesday night for Game 4, with the New York Knicks holding a 2-1 series lead over the San Antonio Spurs after a thrilling 115-111 Spurs victory in Game 3. Victor Wembanyama’s dominant performance has San Antonio believing it can even the series on the road, while the Knicks aim to reclaim momentum and move within one win of their first championship since 1973.

Tipoff is scheduled for 8:30 p.m. ET. The Knicks enter as 2.5-point favorites, with the over/under set at 216.5 points. After dropping the first two games in San Antonio, the Spurs stole Game 3 in New York behind Wembanyama’s explosive 32-point, eight-rebound, six-assist, three-block, two-steal masterpiece and strong contributions from rookie Stephon Castle.

Wembanyama’s Emergence as the Focal Point

The 7-foot-4 phenom has elevated his play as the series progresses. In Game 3, Wembanyama delivered a full 48-minute effort that turned the tide in the fourth quarter. His ability to dominate both ends of the floor has become the Spurs’ clearest path to victory. Analysts highlight his improved low-post scoring and defensive versatility as keys to sustaining pressure against New York’s physical frontcourt.

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For San Antonio to force a Game 5 back home, Wembanyama must continue anchoring the offense while disrupting the Knicks’ rhythm. His presence forces constant adjustments from New York coach Tom Thibodeau, who must decide between double-teaming the big man or living with his scoring outbursts.

Knicks’ Response and Home Advantage

The Knicks, led by Jalen Brunson, have shown resilience throughout the playoffs. Brunson delivered 32 points in Game 3 but could not overcome the Spurs’ late surge. At Madison Square Garden, the Knicks will lean on their raucous home crowd and defensive identity to reassert control.

New York’s strength lies in its balanced attack and ability to grind out possessions. Players like Karl-Anthony Towns and Mikal Bridges provide secondary scoring and defensive versatility that can counter San Antonio’s length. The Knicks’ 13-game playoff winning streak ended in Game 3, adding urgency to avoid falling into a 2-2 tie.

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Tactical Keys and Adjustments

Coaches on both sides face critical decisions. For the Spurs, maintaining defensive intensity while feeding Wembanyama in advantageous spots will be paramount. San Antonio’s bench, including Castle’s fourth-quarter impact, must provide consistent energy on the road.

The Knicks will likely emphasize containing Wembanyama through help defense and forcing the ball out of his hands. Brunson’s pick-and-roll mastery and New York’s transition game could exploit any lapses in Spurs’ rotations. Rebounding and three-point efficiency are expected to be decisive factors in a series defined by half-court execution.

Series Context and Stakes

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The Finals matchup pits two franchises with storied histories but very different recent paths. The Knicks have built a contender through smart drafting and free agency, while the Spurs have ridden Wembanyama’s meteoric rise following years of rebuilding. A Spurs victory in Game 4 would send the series back to San Antonio with renewed belief, while a Knicks win would put them firmly in the driver’s seat.

Injuries and fatigue could play roles as the series reaches its midpoint. Both teams have managed minutes carefully, but the physical toll of playoff basketball intensifies with each game. Wembanyama’s durability after a strong Game 3 performance will be closely monitored.

Broader Implications

A prolonged series benefits the NBA’s global audience, with stars like Wembanyama and Brunson showcasing the league’s future. Wembanyama’s ability to “bring victory once again” could cement his status as a generational talent capable of leading a championship charge in only his third season.

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For the Knicks, closing out games at home remains a point of emphasis after letting Game 3 slip away. Thibodeau’s defensive schemes have been a hallmark of their success, and adjustments to counter San Antonio’s length will define the remainder of the series.

What to Watch in Game 4

Expect high-intensity basketball from the opening tip. Early foul trouble on either star could shift momentum quickly. Three-point shooting, particularly from the Spurs’ supporting cast, may determine if they can stretch the floor effectively against New York’s pack-line defense.

Fan atmosphere at Madison Square Garden is expected to be electric, providing the Knicks with a tangible home-court edge. The Spurs must withstand the pressure and execute their game plan to force the series back to Texas.

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Analysts project a competitive contest, with models favoring the under on total points due to strong defensive showings in prior games. Individual performances from Wembanyama and Brunson will likely dictate the outcome, as both have shouldered heavy scoring loads.

Historical Parallels and Outlook

The series echoes past Finals battles where young superstars faced veteran-led squads. Wembanyama’s poise under pressure has drawn comparisons to legendary big men, while the Knicks embody a gritty, team-first approach reminiscent of championship clubs from previous eras.

Regardless of Game 4’s result, the matchup has delivered compelling basketball and highlighted the league’s parity at the highest level. As the series continues, focus will remain on execution in critical moments and the ability of star players to elevate their teams.

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The Knicks hold the series advantage and home-court momentum, but Wembanyama’s Game 3 heroics have proven the Spurs are far from finished. Wednesday night’s contest promises another chapter in what has become a hard-fought, entertaining NBA Finals.

Both sides possess the talent and coaching to compete at an elite level. The outcome of Game 4 could shift the narrative dramatically, setting the stage for a memorable conclusion to the 2026 postseason. Fans and analysts alike will be watching to see if Wembanyama can once again deliver a victory that keeps San Antonio’s championship hopes alive.

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Needham raises CECO Environmental stock price target on Thermon deal

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Concord Biotech shares gain 6% after USFDA approval for Tofacitinib tablets

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Concord Biotech shares gain 6% after USFDA approval for Tofacitinib tablets
Shares of Concord Biotech rose over 6% to their day’s high of Rs 1,350 on the BSE on Wednesday after the company announced that it had received approval from the U.S. Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Tofacitinib Tablets in 5 mg and 10 mg strengths.

According to the company, the approval covers Tofacitinib Tablets indicated for the treatment of adult patients with moderately to severely active rheumatoid arthritis (RA), active psoriatic arthritis (PsA), active ankylosing spondylitis (AS), moderately to severely active ulcerative colitis (UC), active PsA, and active polyarticular course juvenile idiopathic arthritis (pcJIA).

The regulatory approval has been granted by the U.S. Food and Drug Administration, the company said in its filing. Concord Biotech stated that the approval aligns with its growth strategy and is expected to strengthen its position in the U.S. market. The company added that the clearance allows it to expand its product portfolio and pursue opportunities in the U.S. and international markets.

According to market estimates cited by the company, the U.S. market opportunity for Tofacitinib Tablets across the 5 mg and 10 mg strengths is approximately $500 million. The approval pertains specifically to the company’s ANDA for Tofacitinib Tablets in the two approved dosage strengths. The company said the development supports its long-term growth plans and enhances its ability to participate in the relevant therapeutic segments in the United States.

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The company noted that the approval for Tofacitinib Tablets, 5 mg and 10 mg, is expected to strengthen its presence in the U.S. market while broadening its range of offerings. The approval also provides access to a market that the company estimates at approximately $500 million for the two strengths combined.

Concord Q4 snapshot

The R&D-focused biopharmaceutical company reported a 36.8% year-on-year decline in fourth-quarter net profit at Rs 88.8 crore, compared with Rs 140.4 crore in the corresponding period last year, as lower revenue and margin compression weighed on earnings.
Revenue from operations fell 24.1% to Rs 326.1 crore from Rs 429.9 crore a year earlier. EBITDA for the quarter declined 37.8% year-on-year to Rs 118.5 crore, while the EBITDA margin contracted to 36.4% from 44.3% in the year-ago quarter.
Concord share price is down 36% in the last 1 year. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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