The 10 best performing stocks of 2023

The S&P 500 shook off a March banking crisis to close out its second consecutive quarter of greater than 5% gains. However, investors are still concerned the Federal Reserve will be unable to bring down inflation and navigate a soft landing for the U.S. economy. Top 2023 stock market performers include health care stocks with unique catalysts and stocks exposed to cryptocurrency technology.

Here are the 10 best-performing stocks of 2023 among companies that trade on major U.S. exchanges and have market capitalizations of at least $1 billion:

1. C3.ai Inc. (AI)

C3.ai is an enterprise software vendor that builds large-scale AI systems. The success of OpenAI's ChatGPT has made AI a popular investing trend on Wall Street and has sent C3.ai's share price soaring. In late January, C3.ai announced plans to launch C3 generative AI for enterprise search. The stock rallied further in March, even after a group of technology experts penned an open letter urging a pause in AI development.

2. Riot Platforms Inc. (RIOT)

Riot Platforms is a Bitcoin mining company. Cryptocurrency-related stocks tanked during 2022's "crypto winter" because rising interest rates triggered a broad market rotation out of cryptocurrency in 2022, sending Bitcoin prices tumbling and making mining far less profitable. So far in 2023, Bitcoin prices are up considerably. Riot reported a 55% annual increase in Bitcoin production in February and now holds more than 7,000 BTC on its balance sheet.

3. Naas Technology Inc. (NAAS)

Naas Technology is one of the largest electric vehicle charging service providers in China. In February 2022, China's Dada Auto Inc. announced a merger with Rise Education Cayman. The merger was completed on June 10, 2022, and Naas Technology was born. Naas has benefited from the easing of COVID-19 restrictions in China, and the stock took off like a rocket after the company reported adjusted financial results for the six months ended June 30, 2022, including 592% revenue growth. Naas also recently unveiled its first automatic charging robot.

4. Oscar Health Inc. (OSCR)

Oscar Health is a health insurer with more than 1.1 million members that is primarily focused on U.S. Affordable Care Act exchanges. Oscar shares rallied in February when the company reported 93% annual membership growth and guided for 2023 direct and assumed policy premiums of between $6.4 billion and $6.6 billion. The company said cost cutting is a top priority in 2023, and it plans to reduce its adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, loss to between $75 million and $175 million this year, a major step toward profitability.

5. Marathon Digital Holdings Inc. (MARA)

Marathon Digital is one of the largest Bitcoin (BTC) miners in North America. Like other crypto stocks, Marathon shares have gotten a big 2023 boost from the rebound in the crypto market. In March, Marathon reported a net loss of $686.7 million in 2022 but said Bitcoin production was up 30% last year. In 2023, the company said its primary goals are to boost production capacity by midyear and optimize performance to become more efficient.

6. Aurinia Pharmaceuticals Inc. (AUPH)

Aurinia Pharmaceuticals is a clinical-stage biopharmaceutical company that develops therapies to treat autoimmune diseases. In February, the company reported fourth-quarter numbers that impressed Wall Street. Full-year revenue was up 194%, and fourth-quarter revenue was up 21% from the prior year. The big quarter was driven by Lupkynis, the only oral therapy to treat autoimmune disorder lupus nephritis that is currently approved by the FDA. Aurinia also settled a key patent lawsuit with Sun Pharmaceutical Industries Ltd. in January that removes uncertainty for investors.

7. Reata Pharmaceuticals Inc. (RETA)

Reata Pharmaceuticals is a biotechnology company that specializes in rare disease treatments. Reata shares gained more than 190% in just three trading days in late February when the FDA approved the company's Friedreich's ataxia treatment candidate, Skyclarys, for patients 16 and older. Skyclarys is now the first and only FDA-approved drug to treat Friedreich's ataxia, which affects roughly 5,000 people in the U.S. While the potential market for Skyclarys may be small, Reata will have tremendous pricing leverage.

8. Kingsoft Cloud Holdings Ltd. (KC)

Kingsoft Cloud is the largest independent cloud service provider in China. Kingsoft shares have enjoyed multiple bullish catalysts so far in 2023. First, China has finally lifted its COVID-19 restrictions, opening the door for the Chinese economy to normalize. In addition, Chinese regulators have seemingly eased up on their crackdown on Chinese tech stocks, potentially eliminating another overhang for Kingsoft. Finally, the company reported a smaller-than-expected earnings loss in March and said fourth-quarter gross margins were 7.6%, up from 1% the prior year.

9. Provention Bio Inc. (PRVB)

Provention Bio is a clinical-stage biotechnology company developing various novel therapeutics. On March 13, French pharma giant Sanofi (SNY) announced plans to acquire Provention at a price of $25 per share, a deal that values Provention at roughly $2.9 billion. The week the deal was announced, Provision shares rallied 258%. Provention's Type 1 diabetes treatment Tzield was approved by the Food and Drug Administration (FDA) in 2022, and Sanofi already has several of its own diabetes treatment products.

10. BridgeBio Pharma Inc. (BBIO)

BridgeBio Pharma is a biopharmaceutical company focused on treating genetic diseases and cancers that have a single genetic driver. The stock surged more than 70% in early March when BridgeBio released positive results from its phase 2 clinical trials of infigratinib, a treatment for children with achondroplasia. Achondroplasia is a genetic disorder that is the most common cause of short stature, but BridgeBio reported 80% of children treated with the highest dose of infigratinib exhibited an increase of at least 25% in annualized height velocity after six months.

The stock market is influenced by a variety of factors such as the overall economic performance of the country, political stability, company performance, interest rates, and global events. There are a few general principles that can help you make informed investment decisions:

Diversification: Investing in a diverse range of stocks can help reduce risk.

Long-term investing: Historically, the stock market has shown an upward trend over the long term. Short-term volatility can be weathered by holding onto your investments for a longer period.

Research: Investing in stocks requires research and analysis of companies, their financial statements, industry trends, and other relevant factors.

Remember, investing in stocks carries risk, and there are no guarantees in the stock market. It's important to consult with a financial advisor before making any investment decisions.