IREN Ltd (IREN) Is One Of The Top Underperforming Data Center Stocks To Buy

IREN Limited (NASDAQ:IREN)  is one of the 7 Underperforming Data Center Stocks to Buy According to Short Sellers. 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.

IREN Limited (NASDAQ:IREN)  is one of the 7 Underperforming Data Center Stocks to Buy According to Short Sellers.

Photo from IREN website

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.

While we acknowledge the risk and potential of IREN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IREN and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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