The US stock indices are decreasing as investors try to make sense of mixed earnings reports from banks. Donald Trump’s Treasury choice is being grilled by the Senate on tariffs, Fed independence, and tax cuts. LA wildfires are coming under control, though high winds continue to make things uncertain in the region. Amidst all this, it is business as usual for many companies. From tech companies to automotive, every firm is collaborating with others in the industry to add more value for its customers. Some of these partnerships relate to the improvement of services while others act as value additions to both businesses, such as Microsoft and Pearson plc’s partnership on improving education and training.
We compiled a list of 10 stocks that are either surging on such collaborations or have the potential to outperform the market based on business improvements through these collaborations. To come up with our list of 10 stocks that are gaining momentum from key collaborations, we only considered stocks with a market cap of at least $1 billion.
10. Nokia (NYSE:NOK)
Nokia is set to add more passive income to its business after completing an agreement with the South Korean tech company Samsung. While the exact terms of the latest agreement are confidential, we do know that Samsung will pay for the deal in the form of royalties. The deal is spread over multiple years and pertains to a patent license agreement for Nokia’s video technology in Samsung’s TV sets.
Nokia enjoys a healthy collection of patents, especially related to 5G technology. However, the company lacks in execution and is often edged out by its rival Ericsson, a Swedish telecommunication company. The 5G equipment maker’s future growth continues to be uncertain amidst declining sales, something that has irked investors for many years now.
In another development, the Finnish firm also signed a partnership in the Middle Eastern region with Zain KSA to address coverage gaps in different regions. This will be achieved using multiple Nokia technologies, including Femto Manager and IP Security Gateway.
9. Pearson plc (NYSE:PSO)
Pearson plc is a global education and assessment services provider. It operates in multiple segments, including virtual learning, English language training, and workforce skills. The company has returned 27% gains in the last year, slightly better than the S&P 500 returns. The positivity now continues into 2025 as the firm announced a partnership with the tech giant Microsoft.
The company is accelerating the implementation of AI technologies into its educational and training programs with the help of Microsoft. It will utilize Microsoft’s AI tools and Azure cloud services to aid in this development. Microsoft 365 Copilot will also be incorporated into its workforce.
As part of the partnership, Microsoft will also utilize Pearson’s expertise to improve its workflows. The partnership should help PSO continue its upward trajectory, despite concerns over international tariffs during Donald Trump’s government.
8. Magnite (NASDAQ:MGNI)
Magnite Inc. is a leading independent shell-side advertising platform operating globally whereas Samsung Electronics Co., Ltd is a multinational company operating through 4 main segments including consumer electronics, device solutions, IT & mobile communications, and display panels. Samsung ads is its advertising division which provides targeted solutions for brands. Magnite just announced the expansion of its partnership with Samsung ads.
Advertisers will be able to display targeted ads on Samsung TV Plus in Singapore, Thailand, and the Philippines for the first time. As soon as the news broke, the company’s stock price experienced an uptick. Seeing how stocks performed as a result of the news, the partnership might keep advancing the company’s share prices.
Additionally, advertisers can now have automated access to present high-quality video ads on Samsung TV Plus, a free service available in Southeast Asia. As a result of this strengthening partnership, Magnite’s share prices surged making it a good indicator for investors.
7. Halliburton (NYSE:HAL)
Halliburton and the government of Iraq are about to come to an agreement regarding the Nahr Bin Omar oilfield’s future development. If the deal goes through, Iraq will allow Halliburton to access Nahr Bin Omar oilfield’s data so the company can help the country increase its oil production.
Halliburton could help the country increase the oilfield’s production from the current 50,000 bbl/day to 300,000 bbl/day, a six-fold increase! This will not only help the company improve its revenue but also aid Iraq in increasing its oil production. This revenue is important for the company as HAL’s revenue has seen a decline lately.
The company’s balance sheet remains sound, though the long-term debt continues to irk investors. That is perhaps also a reason why the firm had a lackluster 2024, something that could change in 2025 if the company manages to increase revenues.
6. Grab Holdings Ltd (NASDAQ:GRAB)
Grab Holdings Ltd. is Southeast Asia’s largest ride-booking and food delivery company whereas BYD Company Limited is involved in making EVs and batteries. Grab Holdings will now be able to use BYD as its supply partner for EVs to aid in its ride-booking and food delivery business.
This partnership will provide access to 50,000 electric vehicles to Grab’s drivers in Southeast Asia. According to the partnership, Grab’s drivers will receive extended warranty on EV batteries at affordable rates. Moreover, the partnership will cover various regions including Malaysia, Thailand, Indonesia, and Singapore. Vehicle models included in the deal include Denza D9 MPV, BYD M6, BYD Atto 3, and BYD Seal.
According to Grab executive Chuck Kim, the purpose of the deal is to make drivers better off by reducing financial barriers and making electrical vehicles a more affordable option. In the long run, the goal is to provide economic benefits to drivers by saving their fuel costs.
5. General Motors Company (NYSE:GM)
General Motors Company engages in cars, trucks, automobile parts, software-enabled services, and subscriptions among other segments. Vianode, a supplier of sustainable battery materials, is a subsidiary of Elkem ASA. GM declared that it signed a deal with Vianode that will be operational from 2027 to 2033.
According to the agreement, GM will receive synthetic graphite anode materials from Vianode to produce batteries for electric vehicles. The company will produce these batteries through its collaboration with LG Energy Solutions.
Vianode is reportedly planning to establish a plant near LG’s and GM’s battery production. The main objective of the plant is to produce around 80,000 tons of synthetic graphite per year, which can be used to provide electric vehicles to around 1.5 million people. Share prices of GM were down recently but in the last 2 days, stock prices have improved. This deal is likely to affect GM stock prices positively making it attractive to investors.
4. EPAM Systems (NYSE:EPAM)
EPAM Systems Inc. is a global software development and digital transformation services provider. Google Cloud is a combination of cloud computing services provided by Alphabet, offering a wide range of services including networking, applications, and storage services. EPAM is strengthening its collaboration with Google Cloud to address industry challenges faced by its clients.
This improved partnership will help clients gain business outcomes through data analysis, generative AI, and legacy modernization powered by Google Cloud. According to the company, this strategic partnership will enable them to deliver high-valued and repeatable solutions for customers.
Right after the partnership news broke, EPAM’s share prices showed a significant rise. Although share price went back to the same level it was at before the news, the stock is likely to attract investors going forward.
3. Plug Power Inc. (NASDAQ:PLUG)
Plug Power Inc. is a hydrogen solutions provider for the green hydrogen economy operating globally. It recently announced a contract with a Green Ammonia producer, Allied Green Ammonia (AGA). According to this agreement, AGA will install a 4.5 GW plant which will be used by Power Plug to produce clean electricity. AGA’s mega project is expected to produce 2700 tpd of green ammonia.
CEO of Plug expressed his thoughts about this partnership by saying:
Together, we’re not only advancing green ammonia production but actively supporting the global transition to a net-zero emissions future.
Plug Power stock hasn’t proved to be a useful long-term investment. However, there have been shorter episodes of bull rallies in the stock that attract traders. Investors would hope that deals like this will bring a sustainable bullish rally in the stock.
2. Teladoc Health (NYSE:TDOC)
Teladoc Health is teaming up with Amazon’s Health Benefits Connector to expand its outreach and increase enrollments. Amazon Health Benefits is a marketplace program that connects Amazon users with health benefits programs. By entering into this marketplace, Teladoc will be able to enhance the public’s access to its programs.
The company believes this easier access will help people access the care they need in a simpler way, removing the barriers that stop most Americans from finding out about useful medical programs. More than 25% of the US population is unable to enroll in eligible medical programs because of a very unfortunate reason: they never become aware of it! Teladoc wants to remove this barrier and tap into this vast market.
The deal also aligns with the objectives of both companies, who want consumer-centric healthcare solutions to be easily accessible to the public. Teladoc shares have had a poor start to the year but investors will hope things get better for the company after this partnership.
1. IBM (NYSE:IBM)
IBM plans to acquire Applications Software Technology, a consulting company that creates and sells solutions on the Oracle Cloud Applications Suite. While the financial details of the acquisition haven’t been disclosed, the acquisition is set to materialize during this quarter as long as there are no regulatory hurdles.
Applications Software Technology boasts clients in multiple industries including consumer packaged goods, energy, and manufacturing. But more important than that, the company’s ability to create applications on the Oracle Suite will help IBM serve its existing clients better.
2024 was one of the best years for IBM investors as the stock surged to 10-year highs. Acquisitions like this will help the company sustain that bull run going forward.
IBM is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held IBM at the end of the third quarter which was 54 in the previous quarter. While we acknowledge the potential of IBM as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as IBM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
