We recently published a list of 15 AI News Updates That Investors Are Watching. In this article, we are going to take a look at where Iris Energy Limited (NASDAQ:IREN) stands against other AI news updates that investors are watching.
The chip wars between the United States and China are in full swing. After reports that the US was considering additional curbs on the export of advanced AI chips to Chinese companies, Beijing responded by saying it would take necessary actions to protect Chinese firms if the US escalated chip control measures. According to a report by news agency Reuters, when quizzed about reports that the US was planning to add 200 Chinese firms to a trade blacklist, a Chinese government spokesperson said China strongly opposes the US broadening the concept of national security, and the abuse of control measures targeting Chinese companies.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
He Yadong, a commerce ministry spokesman, said that these actions severely disrupt the international economic and trade order, destabilise global industrial security, and harm the cooperative efforts between China and the US, as well as the global semiconductor industry, per Reuters. If the US insists on escalating control measures, China will take necessary actions to resolutely protect the legitimate rights of Chinese enterprises, he added. The report adds that the US fears China using chips to strengthen military capabilities.
READ ALSO: 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A table full of technology, with bitcoin mining rigs and a laptop showing a financial graph.
Iris Energy Limited (NASDAQ:IREN)
Number of Hedge Fund Holders: 28
Iris Energy Limited (NASDAQ:IREN) owns and operates bitcoin mining data centers. It also provides high performance computing solutions, including Al cloud services. On November 27, Cantor Fitzgerald raised the price target on the stock to $23 from $20 and kept an Overweight rating on the shares. Based on the firm’s year-end hash rate estimates, Iris is trading on a lower enterprise-value-less-Bitcoin/hash rate multiple than the pure-play Bitcoin miners despite having legitimate AI/HPC potential, the advisory told investors. In addition, Iris is likely taking over the reins as the low-cost miner amongst our coverage by year-end, Cantor says.
Overall, IREN ranks 13th on our list of AI news updates that investors are watching. While we acknowledge the 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.