- IREN
- NVDA
Iren (NASDAQ: IREN) is the one artificial intelligence (AI) stock I would buy through the next bubble scare. I’m doing it right now, and if Iren stays at such a low price, I will intensify my buying. The company has several bullish catalysts, and certain “bearish” claims about Iren and the neocloud industry are actually quite bullish for Iren on closer inspection.
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Addressing recent concerns
Almost all the bearish concerns people bring up about Iren are actually bullish. First, Gartner released research that projected 80% of neoclouds ceasing independent operations by 2030 while casting doubts about AI infrastructure spending.
However, Iren remains one of the top neocloud providers and has a pristine balance sheet. If 80% of neocloud providers are out of business by 2030, Iren’s capacity will become much more valuable due to supply constraints.
Second, CoreWeave‘s (NASDAQ: CRWV) corporate bonds reached yields of 15%, causing investors to worry about how expensive it would be for neoclouds to borrow money in the future. However, CoreWeave has an elevated rate because its balance sheet is under duress. CoreWeave has a current ratio of 0.46 and will need to refinance some of its debt. Iren has a much more favorable current ratio of 3.55.
Their balance sheets are in different leagues. If costs rise for neoclouds, it’s yet another barrier that delays or shuts down competitors. That scenario would let Iren charge higher prices for its megawatts. Less supply also gives Iren more negotiating power, which can translate into higher prepayments that reduce dilution or make it unnecessary in the near future. Iren can also obtain low-APR capital through GPU financing and by using its constructed data centers as collateral.
The frustration of zero news is great for investors who can wait
Iren hasn’t offered investors much material since it reported fiscal 2026 fourth-quarter earnings at the end of August. Since then, the company has only issued one press release at the start of September detailing that its 2-gigawatt Sweetwater Hub was included as Base Load in ERCOT Batch Zero. It’s a useful milestone that moves Iren a little closer to energizing the site, but nothing groundbreaking.
The lack of news also means nothing about the stock has changed. Iren still has a 5.8-gigawatt pipeline, and AI demand is still surging. The company is leading discussions for approximately $25 million per megawatt, and customer prepayments have been covering 45% to 55% of GPU capital expenditures.
