IREN is attractive AI infrastructure: Bitcoin mining left it with >5 GW data-center capacity, validated by a ~$9.7B Microsoft GPU deal and AI cloud revenue from $16M to ~$129M. Despite collapsing below $3 and his ~$40 buy at a loss, he is optimistic and may add, seeing it as undervalued, if AI demand keeps growing.

The fifth stock is IREN, whose ticker symbol is IREN. IREN has quickly become one of the most attractive AI infrastructure companies on the market. And why I'm interested in this starts with one thing, and that's electricity.

AI data centers require a lot of electricity, and the availability of that electricity has become one of the biggest obstacles to the industry's rapid growth.

IREN has been building that infrastructure for years, because they used to mine Bitcoin, and Bitcoin mining is completely electricity-intensive. The company currently controls a large portfolio of data center sites, with a combined existing and development pipeline of more than 5 gigawatts of power capacity.

And now, they are using that infrastructure to build AI cloud services.

So, IREN is not just buying GPUs and letting someone rent them. They are building an entire infrastructure around these GPUs —land, electricity, data centers, cooling, networking, computing power, and everything else needed to run this massive AI cluster.

They have already managed to attract some important customers. For example, Microsoft is one of their customers. It seems like Microsoft is everyone's customer now. And so a large cycle of business has been created between customers and businesses with each other.

And these customers are mainly from the B2B sector. A lot of money is being spent in the B2B sector now.

That's why I like IREN. However, when I look at IREN, I'm interested because they just signed a multi-year deal with Microsoft , worth about $9.7 billion, that will provide access to Nvidia GPUs.

They have also signed deals with AI customers like Proplexity and Figure AI. And I think it's important because it validates the infrastructure that they've built over the years.

There are many companies that want to participate in the AI boom or expansion. But there are very few companies that already have the ability to control gigawatts of electricity and convert that energy into real computing power.

And that aspect of Irene is very interesting to me.

If the demand for AI computing continues to grow , Irene has an asset that is becoming increasingly difficult to find: large- scale, power- rich data center capacity. The financial situation also looks quite good.

Irene earned a total of about $707 million, up 41% from the previous year. But the number I'm most interested in is the revenue from AI Cloud. It has increased from just 16 million to about 129 million in 1 year.

This is almost eight times the income generated from that particular business.

And even that doesn't paint a complete picture of what's coming, as Irene says they currently have about $1 billion in annual AI cloud revenue going forward and they have about $4 billion in annual contracts with capacity through 2026.

In fact , management says that the 2026 capacity is now almost completely sold out.

So there is a huge gap between what we see in historical financial statements and the amount of AI business deals that have already been signed. Again , I'm keeping an eye on future numbers.

Now, having said that, let's look at the technical analysis, where Irene is facing very large selling pressure. So I am very optimistic about this stock. Okay friends, here's a very dramatic picture of Irene's rise and fall.

It has suffered a huge fall from a high of 40 in September just a few weeks ago, and now the stock has literally collapsed. I mean, under $ 3 per share. It is very surprising to see the stock in such a condition.

Technically, it has fallen below the July low. So, now I think it's a very difficult time for Irene's investors.

This is what I like about the stock right now. I am very interested in investing in stocks. When a stock drops this low, it's exactly the kind of technical change I like to see.

To be clear , I think I bought at around $40, so I'm at a loss on this stock , and I'm thinking of buying more because I think it's very undervalued at this point.