Investment Insights: AI Stocks to Watch in 2027
As artificial intelligence (AI) technology continues to evolve, it’s an exciting time for investors looking to capitalize on its growth. The AI landscape includes innovations like autonomous vehicles, humanoid robots, and AI-driven chatbots, all of which have the potential to transform industries.
Top Picks for 2027
Here are two notable AI stocks I am considering for investment in 2027:
1. Iren (IREN)
Current Status:
- Market Cap: $18 billion
- Current Price: $44.68
- Recent Change: +7.28%
Thesis:
Iren stands out in the neocloud sector, supplying essential data centers for “hyperscalers” that require significant computing power. Its recent achievements include a substantial $9.7 billion deal with Microsoft, with expectations to increase revenue from $9.7 million to $25 million per megawatt with future deals.
- Growth Potential:
If Iren can realize this new pricing across its portfolio, it could see annual recurring revenues skyrocket to $145 billion. The company’s strategy to secure prepayments from clients is a smart move to mitigate rising capital expenditure concerns.
2. Netlist (NLST)
Current Status:
- Market Cap: $2 billion
- Current Price: $5.02
- Recent Change: -9.71%
Thesis:
Netlist specializes in CXL solutions pivotal for future AI infrastructure. Following a strategic agreement with Samsung, which includes a substantial up-front licensing fee and guaranteed chip purchases, the company focuses on capitalizing on similar agreements, including a pending case against Micron Technology—a potential additional revenue stream.
- Recent Challenges:
Despite a recent downturn, driven by a patent case loss, Netlist’s fundamentals remain strong. The company still holds valuable patents that could secure further benefits similar to its deal with Samsung.
Conclusion
Investing in AI presents immense opportunities, with stocks like Iren and Netlist positioned strategically within the evolving tech landscape. Iren’s robust potential in data center revenue and Netlist’s unique positioning in AI infrastructure make them compelling choices for 2027. As always, investors should conduct thorough research before making any financial decisions.
