Why Is HYLN Stock Soaring 12% Higher In Overnight Trading?

• In another interview with FINTECH.TV, Healy said that the way data centers are powered is set to change, moving to on-site power generation. 
• The CEO said the company aims to help data centers obtain electricity faster and more cheaply than from the grid using its KARNO generators.
• The company is targeting commercialization of its KARNO generators by the end of the year, while also eyeing about 10 early-adopter units.

Shares of Hyliion Holdings Corp. (HYLN) surged more than 12% in the overnight session, following a close nearly 18% higher on Thursday, after CEO Thomas Healy said the company is looking to become a major player in the AI power-generation layer.

In an interview with Benzinga, Healy said that while companies like Nvidia Corp. (NVDA) and Vertiv Holdings (VRT) support computing and cooling functions for AI data centers, electricity generation is still a critical requirement.

Enter Hyliion’s KARNO generator technology: a fuel-agnostic linear heat generator designed to provide on-site electricity for customers without tapping into the grid.

“The constraint on AI deployment right now isn’t chips, it isn’t talent, it isn’t data, it’s power,” Healy told Benzinga. “Nvidia owns the compute layer. Vertiv owns a lot of the thermal and power distribution inside the data center. We’re solving the problem one layer upstream.”

On-Site Electricity Generation For AI Data Centers

The company’s KARNO generator technology, which it acquired from GE Additive in August 2022 for $37 million, can run on natural gas and diesel, as well as alternative fuels such as hydrogen and propane, and is positioned to deliver reliable on-site power with lower emissions and reduced maintenance requirements.

In an interview with FINTECH.TV, Healy said that the way data centers are powered is set to change amid growing electricity crunches. “It’s now moving to on-site power generation,” he said, indicating that it will involve generating their own electricity to remove dependency on the grid.

That’s the focus of Hyliion, Healy said, adding that the company aims to help data centers get electricity faster and more cheaply than from the grid.

Apart from data centers, the company’s KARNO Power Module also has use cases to generate electricity for retailers like Walmart and Home Depot, as well as for military requirements.

Hyliion’s Deals

Currently, Hyliion is executing approximately $20 million in military contracts with the U.S. Navy's Office of Naval Research. Last year, the company announced a $1.5 million contract with the U.S. Navy to develop its multi-megawatt power generation system for shipboard and stationary military applications.

The company said in its latest earnings release that it is in active discussions with additional branches of the U.S. military and expects to sign $40 million to $50 million in additional military contracts this year.

Hyliion also announced that it had signed a non-binding letter of intent with VFG Holdings, a full-stack AI systems infrastructure developer, to deploy up to 250 KARNO cores, or approximately 50 MW of power, over the next five years. Healy said the company now has nearly 750 KARNO cores under signed non-binding LOIs, representing $400 million of potential revenue at current pricing. The company also said it is targeting commercialization of its KARNO generators by the end of the year, while eyeing about 10 early-adopter units.

In the first quarter of 2026, Hyliion posted 460% revenue growth, coming in at $2.8 million, and is targeting about $10 million in full-year revenue.

HYLN Stock: What Retail Traders Are Feeling

On Stocktwits, retail sentiment around HYLN stock jumped from ‘bearish’ to ‘bullish’ territory over the past 24 hours as message volumes increased from ‘low’ to ‘normal’ levels.

One bullish user said, “Because of the recent spike I would assume someone heavy has invested most likely a corporation. Once news breaks we will see 15.”

Another user said, “This one could be generational wealth opportunity!”

HYLN stock has posted six consecutive weeks of growth and has rallied more than 318% so far in 2026.

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