Early investors in artificial intelligence have reaped outsized returns, most famously Nvidia, which rose to become the world’s most valuable publicly traded company on the back of its AI chips. As capital continues to chase the next wave of AI infrastructure, analysts point to two growth‑oriented companies—Iren and Micron—that could capture a sizable share of the data‑center build‑out.
Iren positions itself for AI data‑center growth
AI workloads are moving from the cloud to dedicated physical facilities, driving a surge in power demand. S&P Global projects 50 gigawatts of AI‑related electricity use in the United States by 2030, while McKinsey estimates a global requirement of 156 gigawatts by the same year. Building such capacity is hampered by high capital costs, permitting hurdles and local opposition, creating a bottleneck that Iren (ticker IREN, up 2.73%) believes it can alleviate.
Originally a crypto‑mining operator, Iren leveraged its existing infrastructure to pivot toward AI data‑center services as demand accelerated. The company secured a five‑year, $9.7 billion agreement with Microsoft that covers 200 megawatts (MW) at its Childress facility. The first 50 MW were delivered in August, with the balance slated for completion by year‑end, generating approximately $1.94 billion in annual recurring revenue (ARR) from that site alone.
Recent contracts have become more lucrative on a per‑megawatt basis, and Iren is signing multiyear deals with enterprises and AI research labs to broaden its customer base. The firm projects $4 billion in ARR by the end of 2026. Pre‑payment arrangements from customers fund much of the construction, allowing Iren to negotiate additional capacity for 2027 and 2028 across a 5.8‑gigawatt portfolio.
The 2‑gigawatt Sweetwater facility recently cleared a key security‑base‑load power milestone. Iren expects to deliver the first 300 MW of Sweetwater by the fourth quarter of 2027. Under the Microsoft pricing model of $9.7 million per MW per year, that segment could generate $2.91 billion annually. With megawatt pricing now exceeding $20 million per year, an additional 300 MW could produce roughly $6 billion in yearly revenue. If megawatt values continue to rise and Iren maintains its rollout cadence, the company could become a central player in the AI data‑center expansion.
Micron delivers immediate AI memory chip earnings
Where Iren’s upside is tied to multi‑year construction cycles, Micron (ticker MU, down 2.05%) is already showing strong financial results. The memory‑chip maker’s products are core to AI workloads, and the company reported $54.2 billion in revenue for the fiscal 2026 fourth quarter—a 479 % year‑over‑year increase and a 30.8 % sequential rise that beat guidance.
Micron’s profit margins exceed those of Nvidia, and the firm earns more than half of Nvidia’s profit on a per‑unit basis. Analysts note that if Micron sustains a faster growth trajectory, it could narrow the market‑cap gap between the two companies, which currently stands between $1.2 trillion and $5.5 trillion.
The stock trades at a forward price‑to‑earnings ratio of 7 and a PEG ratio of 0.16, suggesting considerable room for appreciation. CEO Sanjay Mehrotra told investors to anticipate “an even stronger fiscal 2027,” citing multiyear strategic agreements that provide durable, predictable revenue streams.
Memory chips are essential for every data center, and Micron has positioned itself as the sector leader. Tightening supply constraints are expected to keep chip prices elevated, as major technology firms continue to scramble for capacity.
Investment outlook for small investors
For investors with $1,000 to allocate, the two companies offer distinct risk‑reward profiles. Iren presents a longer‑term play tied to the rollout of multi‑gigawatt facilities and the evolving economics of AI power consumption. Micron, by contrast, offers more immediate earnings momentum and a valuation that appears discounted relative to its growth trajectory.
Both firms stand to benefit from the broader AI data‑center boom, a market that analysts expect to require hundreds of gigawatts of power by 2030. As the sector matures, the performance of these growth stocks could provide a barometer for how quickly the industry translates AI demand into tangible infrastructure investment.
Helene Elliott is the Lead Science & Space Reporter at News Raise. She reports on aerospace missions, astrophysics discoveries, quantum research, and environmental technology.
