Today, investors in a wide range of speculative risk-on plays are seeing gains. Specific small and micro-capitalization stocks are also seeing buying pressure, as investors look to identify winners in this topsy-turvy market. One such stock that has piqued investor interest today is Ascent Solar (OTCMKTS:ASTI). Currently, ASTI stock has soared more than 20% on extremely high volume.
Such moves among smaller-cap stocks can be expected. Ascent Solar is a pure-play manufacturer of photovoltaic consumer electronics and portable power applications. When increased demand for electrification-linked solutions increases, so too does the profile of these smaller-cap, higher-upside stocks.
Today’s risk-on trade among various EV and renewable stocks suggests momentum may be returning to this sector. Despite market-related headwinds tied to interest rates and concerns about inflation, specific sectors such as renewable energy have become highly volatile. Today, that volatility is manifesting itself in a positive way.
Let’s dive into the company-specific catalyst that’s taking Ascent Solar higher right now.
ASTI Stock Surges on Key Partnership Announcement
For Ascent Solar, an up-and-coming producer of photovoltaic solutions, acquiring new customers is always a good thing. However, today’s announcement that Ascent has been selected by Momentus (NASDAQ:MNTS), a developer and manufacturer of last-mile space solutions, is especially exciting. Momentus will be using Ascent as a provider of custom solar solutions.
There’s still some serious cachet to space-related stocks, and Ascent is now looking to capitalize on this hype. The solutions it is providing as part of this deal will power an upcoming space flight, scheduled for 2022.
This upcoming catalyst could solidify Ascent’s offering as viable for space-related endeavors. Accordingly, investors appear to be bullish on the longer-term upside Ascent Solar provides.
For now, Ascent Solar appears to be a stock at the higher-risk, higher-reward end of the spectrum. However, on days like today, such stocks can outperform materially. Accordingly, this is a stock that’s worth keeping on the watch list right now.
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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.