Canaan shares surge 18.65% after-hours as short interest growth sparks buying pressure.

Canaan Inc. (NASDAQ: CAN) surged 18.65% in after-hours trading following a mix of earnings-related developments and analyst activity. The company reported Q2 2023 financial results on August 29, with revenue exceeding estimates, despite missing earnings expectations. Additionally, H.C. Wainwright maintained a "Buy" rating on the stock, signaling confidence in its long-term prospects. The after-hours rally suggests investor optimism about the revenue beat and the analyst's endorsement, overshadowing weaker earnings performance and a cautious Q3 outlook. While the firm faces challenges in Bitcoin mining operations and ongoing securities class action investigations, the immediate catalyst appears tied to earnings clarity and upgraded sentiment from key market participants.