5 Underperforming Data Center Stocks to Buy According to Short Sellers

2. IREN Limited (NASDAQ:IREN)

One-month Performance: -41.7%

According to a report released on July 1, Bernstein analyst Gautam Chhugani reiterated a Buy rating on the stock along with a $100 price target. The firm’s price target suggests an impressive 157% upside from the current levels. This upside is slightly higher than the median Wall Street analysts’ upside of 112% based on 17 analysts’ estimates.

After comparing leading AI companies, Bernstein said IREN continues to stand out for its strong profitability. According to the analyst Gautam Chhugani, the company currently has the highest profit margins among the neocloud firms covered in the report. The analyst said this advantage comes from its vertically integrated business model. The Sydney-based company manages key parts of its operations itself, including building data centers, acquiring land, operating its own GPU clusters, and securing energy agreements. This structure gives IREN Limited (NASDAQ:IREN) more control over infrastructure development and costs.

However, the firm noted that the company remains behind rivals such as Nebius and CoreWeave in scale and enterprise AI cloud capabilities.

IREN Limited (NASDAQ:IREN) is an Australia-based company that owns and operates renewable energy-powered data centers. Its facilities are specially optimized for Bitcoin mining, AI cloud services, and other power-dense computing.