Parabolic rises are the fastest way to make outsized gains but they’re also the riskiest – quite possibly the most risky chart pattern – which is why some traders will not buy a parabolic rise but would rather actually wait until a parabolic rise has broken and then short the downside, usually around the 61.8% Fibonacci ratio pullback. Nevertheless, it’s still quite difficult to identify the beginning and end of a parabolic rise in time; however, these are four stocks that might be in them.
Stocks identified by Price Discoveries that are in potential parabolic rises are: American Battery Technology, NioCorp Developments, ClearPoint Neuro, High Tide and Alibaba.
American Battery Technology (ABAT)
The parabolic rise in interest surrounding rare earth metals stems from their critical role in modern technology, from electric vehicle batteries to renewable energy systems. As demand has surged, so too have geopolitical tensions over their supply.
China has historically wielded rare earth embargoes as a strategic weapon. Japan faced significant restrictions at one point in 2025 (with a new restriction placed on 6th Jan this year), as did the United States, until recent trade negotiations appeared to ease tensions. However, these agreements have proven fragile. The current US administration’s tendency to impose tariffs on the very countries with which it has negotiated trade deals has already led to at least one agreement being walked back, effectively nullifying the progress made.
The uncertainty deepens when examining US-China trade relations specifically. The rare earth metal trade issues between the two nations remain unresolved, with only a one-year pause currently in place. This precarious situation has left American industries vulnerable to supply disruptions at a moment’s notice.
The looming threat has spurred America to rapidly seek alternative solutions to the rare earth shortage. Two primary strategies have emerged: securing new sources of supply and developing domestic recycling capabilities. Whilst some have suggested more aggressive geopolitical manoeuvring to access rare earth deposits in other regions, the more sustainable approach appears to be investment in recycling infrastructure.
This is where American Battery Technology’s operations become particularly relevant. The company has positioned itself as a first mover in the battery recycling field, with a large lithium recycling plant already in operation. By recovering rare earth metals from spent batteries, American Battery Technology represents a crucial component of America’s strategy to reduce dependence on Chinese rare earth exports. Whilst recycling alone cannot solve the entire supply challenge, it offers a more stable and sustainable path forward than relying on volatile international trade agreements or geopolitical manoeuvring. The company’s mature operations in this space may prove essential as the one-year pause in US-China rare earth tensions inevitably comes to an end.
NioCorp Developments (NB)
Whilst American Battery Technology takes the recycling approach, another company offers a more traditional route to the same opportunity.
NioCorp Developments, as an actual miner of rare earth metals, represents the same underlying fundamental thesis as ABAT, albeit through a different operational approach. However, the company’s financial position tells a cautionary tale. As a loss-making enterprise, NioCorp Developments has been forced to fund its operations through repeated share dilutions. Total shares outstanding have grown by 173.3% over the past year alone, according to SimplyWallStreet, raising serious questions about long-term shareholder value even as the rare earth metals narrative strengthens.
ClearPoint Neuro (CLPT)
ClearPoint Neuro is a brain-computer interface (BCI) company at the forefront of the industry as the most well-capitalised pure play BCI company in the market at the moment. Unlike diversified medical device manufacturers exploring the space, ClearPoint’s singular focus on BCI technology means its success is entirely tied to the sector’s growth, offering investors direct exposure to what many consider the next frontier in neurotechnology.
The company’s robust capitalisation provides a crucial advantage in an industry where lengthy regulatory pathways and extensive clinical trials can drain resources before revenue materialises, positioning it to outlast undercapitalised competitors.
For a more in-depth analysis on the BCI industry, take a look at Brain-Computer Interfaces: the Next, Next Frontier?
High Tide (HITI)
High Tide operates as a grower and distributor of recreational cannabis, distinguished primarily by what appears to be exceptionally capable management. The company’s leadership has demonstrated particular rigour in selecting locations for their Cabana Club retail outlets, taking a methodical approach to expansion rather than pursuing aggressive growth at any cost. This strategic discipline sets them apart in the crowded cannabis retail space, where many competitors have overextended themselves with poorly chosen locations.
The company did manage to achieve profitability for a single quarter, a milestone that initially sparked investor optimism. However, this brief glimpse of profitability mirrors a pattern all too common amongst cannabis companies that momentarily touch the black before sliding back into losses. The reality remains sobering: like many in the sector, High Tide shows little indication of reaching sustained profitability in the near term. This challenge continues to plague the cannabis industry as a whole, where regulatory burdens, oversupply, and pricing pressures make consistent profitability elusive even for well-managed operators.
Alibaba (BABA)
Chinese artificial intelligence has emerged as a sector highlighted by WEF economists for strong performance in 2026. The expectation centres on meaningful productivity improvements anticipated from AI deployment across Chinese industries, with East Asia showing particularly robust momentum in AI adoption and development. This positioning reflects China’s substantial investments in AI infrastructure and the rapid integration of AI capabilities across its technology sector, creating what many analysts view as a compelling investment thesis for the year ahead.
Alibaba stands as perhaps the most accessible pure play on this Chinese AI opportunity, and the stock has already demonstrated parabolic characteristics with a 70% surge in 2025 driven by its cloud computing and AI divisions. The company’s pivot towards AI services, combined with its established cloud infrastructure through Alibaba Cloud, positions it to capture significant value as Chinese enterprises accelerate their AI adoption. For investors seeking exposure to the Chinese AI theme without venturing into smaller, riskier players, Alibaba offers scale, established operations, and direct alignment with the sector economists are highlighting for 2026.
Parabola Risks
The five outlined above are in middling time frames of a few months, potentially up to a year or two.
However, they are all based on macro trends. The brain-computer interface sector is a potential extrapolation of the AI trend, and if the Augmented Reality industry picks up more steam, it is highly likely that brain-computer interface companies come to the forefront. The marijuana trend is something that Trump is playing up, though we’ve yet to see marijuana properly rescheduled, although they appear to be working on it.
Trump’s isolationist policies make ABAT and NioCorp still-valid plays as America seeks to secure domestic rare earth metal supply chains independent of Chinese control, whilst Alibaba captures the Chinese AI opportunity that WEF economists have highlighted as a strong sector for 2026.
Price Discoveries Disclosure: Not financial advice. No guidance is provided for any particular investor, asset prices can fall as well as rise. Price Discoveries is not a licensed securities dealer, broker, investment bank or advisor.