Analyst Bets on Iren and Netlist for 2027 AI Investment
A financial analyst outlines a 2027 investment strategy focused on two artificial intelligence stocks: data center firm Iren and memory technology company
Financial analyst Marc Guberti is building his positions in Iren and Netlist for 2027. He focuses his investment strategy on artificial intelligence stocks, believing the technology is still in its early stages.
Guberti already holds shares in both companies. He argues that AI-driven products like autonomous vehicles and chatbots are poised for rapid scaling.
The Case for Iren
Iren is a neocloud company building data centers for hyperscalers. The firm provides the necessary chips, power, and facilities. It finished its fiscal 2026 fourth quarter with $1 billion in operating annual recurring revenue.
The company expects that figure to hit $4 billion by the end of 2026. Iren's value proposition is tied to the rising price of compute. Its landmark five-year deal with Microsoft is valued at $9.7 million per megawatt-year. Guberti reports the company is now negotiating new deals at $25 million per megawatt.
If Iren achieved that $25 million rate across its entire 5.8-gigawatt portfolio, annual recurring revenue could theoretically reach $145 billion. Guberti is not overly concerned about rising capital expenditures. He notes that customers prepay 45% to 55% of each contract, easing funding for new builds.
The Netlist Patent Play
Netlist is a smaller AI stock with a market capitalization of $2 billion. The company develops CXL solutions for future AI infrastructure and resells memory products. Guberti highlights its patent portfolio as a source of immediate upside.
After a long legal fight, Netlist reached a strategic agreement with Samsung. The deal includes an up-front licensing fee of $239 million. Samsung must also pay quarterly royalties of up to $32.9 million for five years.
Netlist secured the right to buy up to $300 million in Samsung memory products annually for five years. This guarantees chip supply during constraints. The total potential gross license revenue over five years is $897 million. Guberti calls this mostly pure profit.
The company is pursuing similar action against Micron Technology. Guberti believes this could yield another lucrative deal. He addresses investor concerns after Netlist lost a patent appeal against Micron. That case is different from the patents used in the Samsung deal, he argues.
Micron still faces a $445 million judgment in a separate patent infringement case. Guberti calls this a major catalyst for Netlist shares. He views a recent 20% stock price drop on the appeal news as misguided.
Analyst Context and Disclosures
The Motley Fool's Stock Advisor service did not include Iren in its list of ten best stocks to buy now. Marc Guberti discloses he holds positions in both Iren and Netlist. The Motley Fool holds positions in Micron Technology and Microsoft.
