AI infrastructure is suddenly under a microscope after Anthropic cut its planned IPO valuation, putting a question mark over how much investors are willing to pay for the broader theme. That reset has pulled attention from hype to hard assets, especially the cloud and data center platforms that supply the computing power everyone needs. This piece walks through three stocks from the AI hyperscaler and cloud group that may be worth a closer look.
The three stocks covered below are just a starting sample from the AI hyperscaler and cloud group. The full screen surfaced 36 more companies with equally compelling stories that are not covered here. To identify, compare, and analyze the highest conviction plays across this broader group, go straight to the AI - Big Tech and Cloud Providers screener.
IREN (IREN)
IREN has shifted from being known mainly as a Bitcoin miner to a vertically integrated AI cloud infrastructure play, plugging directly into the screen’s focus on GPU heavy data centers that rent compute to large cloud buyers and AI labs.
"IREN's AI Cloud Services, featuring 816 NVIDIA H100 GPUs, saw a 21% revenue increase in June 2024 due to higher utilisation by their customer, Poolside AI, and the onboarding of new customers."
What really matters for investors now is how one unresolved funding pressure shapes the economics of that rapid AI capacity buildout.
IREN Limited runs and develops AI focused data centers across Australia, Canada and Europe, providing GPU rich cloud and high performance computing hosting while still keeping a Bitcoin mining arm, and the stock is valued at about US$7.7b in the market.
That funding question is exactly where the story gets interesting. The full narrative for IREN unpacks how IREN’s AI buildout, risk profile and upside potential fit together.
Hut 8 (HUT)
Hut 8 is one of the clearest crossover stories in this screen, using power and data center assets to host energy hungry compute for Bitcoin mining and, crucially, AI and high performance workloads that rent GPU and ASIC capacity from converted mining sites.
Hut 8 Corp. runs an energy and compute platform across the United States and Canada, with about US$289 million from Compute, US$135 million from Digital Infrastructure and US$29 million from Power, and the stock is valued at roughly US$5.5b in the market.
"Management expects audit results on December 10 and anticipates an unconditional classification on December 17. It says this gives a clear path to energizing the full gigawatt, with 700 MW expected in the first quarter of 2027."
What really matters now is how one regulatory decision shapes the economics of locking in long term AI hosting contracts on that future capacity.
That regulatory hinge is exactly why reading the full narrative for Hut 8 can help you see where Hut 8’s AI hosting story could accelerate or stall next.
International Business Machines (IBM)
IBM gives this AI and cloud screen a different flavour, because it focuses on hybrid cloud plumbing rather than pure public cloud capacity, tying together on premises servers, Red Hat software and hyperscaler partnerships that large enterprises already rely on.
"IBM's focused strategy on hybrid cloud and AI remains central as software reaches nearly 45% of total revenue and about 80% of that software revenue is recurring."
The real swing factor is how one less visible shift in client appetite for long term AI and hybrid cloud commitments shapes that recurring mix.
That shift in commitment appetite is exactly what the full narrative for International Business Machines unpacks, showing where IBM’s hybrid cloud and AI story could be accelerating or quietly stalling next.
Seeking Fresh Alternatives Before They Fly
Markets move quickly and fresh breakout stories do not stay under the radar for long. Scan new momentum while it matters, before prices move beyond your comfort zone. Consider acting while opportunities are still developing.
- Spot potential high-upside turnarounds early by scanning the 9 elite penny stocks with strong financials, curated for tiny companies with comparatively stronger balance sheets than much of the speculative universe.
- Follow structural themes by checking the 17 nuclear energy infrastructure stocks, focused on infrastructure operators that are positioned around long-term demand for reactor build-outs and grid support.
- Review cash-focused miners by using the 33 elite gold producer stocks, a filtered group of producers screened for scale, balance sheet resilience and operational staying power.
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Bailey Pemberton
Bailey is an Equity Analyst at Simply Wall St with 4 years of experience as an Associate Adviser at Baywealth Financial Group, where he helped with client portfolio management, investment strategy and research. He completed a Bachelor of Commerce majoring in Finance from the University of Western Australia. As an equity analyst, Bailey provides the team with valuable insights, helping guide the creation of article content and new features like Narratives.
About NasdaqGS:IREN
Operates as a vertically integrated AI cloud services platform in Australia and Canada.
Good value with slight risk.
