CoreWeave (NASDAQ: CRWV) generated incredible excitement when it went public in March 2025. Shares soared from their initial public offering (IPO) price of $40 to over $180 per share within just a few months.
That was because the company had been building out compute capacity to support cloud services requiring significant processing power for several years. That’s exactly what artificial intelligence (AI) labs need, and CoreWeave continues to expand its AI infrastructure.
Missed AI’s “Act 1”? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
But investors are noticing a competitor with a different approach that gives it an advantage on the path to profitability. That company is Iren (NASDAQ: IREN), and it is one investors should dig into.
AI cloud demand
Iren was running a profitable business when management made a pivotal decision. The Bitcoin miner had a record fiscal 2025, reporting almost $87 million in net income for the period, which ended June 30, 2025. But the company realized its assets could be more valuable when offered for high-performance compute needed by AI developers.
Iren gradually began funneling its Bitcoin mining revenue into growing infrastructure for those AI cloud services. It still generated nearly half of its revenue from Bitcoin mining in the latest quarter, but that puts the business at an inflection point. In the prior quarter, more than 75% of revenue came from Bitcoin operations.
Now, its investments into AI infrastructure are beginning to drive the business forward. For the full fiscal year, AI cloud service revenue rocketed nearly eight times higher than in fiscal 2025.
That makes it a good time for investors to get on board.
Iren’s inflection point
Iren is again reporting net losses due to its business strategy. Platform investments and cash impairments for decommissioning Bitcoin hardware and expanding cloud services are needed to support growth and the AI cloud transition.
Wall Street analysts are beginning to voice support for Iren’s plan. JPMorgan Chase analyst Richard Choe has upgraded his firm’s rating from a sell equivalent to a buy, skipping the “hold” level entirely. He increased the price target from $46 to $65 per share, reports Barron’s. That represents roughly 50% upside from the levels of Sept. 18.
The firm sees Iren gaining traction in acquiring new customers and believes its strategic alliance with AI leader Nvidia has enhanced its credibility. The results are apparent, with AI cloud revenue more than doubling over the last two quarters.
Some analysts speculate that Iren’s full transition away from Bitcoin mining will continue until the end of the decade. The stock will react as it makes progress toward that end, however. Now is the time for investors to take action as Iren shakes up the neocloud market.
Should you buy stock in Iren right now?
Before you buy stock in Iren, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Iren wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $387,158!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,365,749!*
Now, it’s worth noting Stock Advisor’s total average return is 932% — a market-crushing outperformance compared to 211% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 19, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. Howard Smith has positions in Iren and Nvidia. The Motley Fool has positions in and recommends Bitcoin, JPMorgan Chase, and Nvidia. The Motley Fool has a disclosure policy.
The Unexpected Rival Threatening to Shake Up CoreWeave’s Market was originally published by The Motley Fool
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
