We recently published 10 Firms Making Effortless 10-40% Gains. IREN Ltd. (NASDAQ:IREN) was one of Friday’s top performers.
IREN ended two days of losses on Friday, climbing 11.43 percent to close at $57.82 apiece as investors took path from this year’s higher spending from one of the world’s largest semiconductor manufacturers amid the strong demand from the rapidly growing AI sector.
On Friday, Taiwan Semiconductor Manufacturing Company (TSMC) announced that it was setting aside a 33 to 37 percent higher budget this year in the range of $52 billion to $56 billion versus the $38 billion to $42 billion last year, on the back of strong demand for semiconductors.
Photo from IREN website
Optimism spilled over to IREN Ltd. (NASDAQ:IREN) and SuperMicro Computer Inc., both heavily reliant on Nvidia Corp.’s GPUs, which are manufactured by TSMC.
Additionally, TSMC’s strong earnings performance in the past quarter buoyed optimism for companies riding the AI wave. During the period, TSMC said that net income expanded by 35 percent to NT$505.7 billion from NT$374.68 billion in the same period last year. Net sales, on the other hand, jumped by 20.5 percent to NT$1.046 trillion from NT$868.46 billion year-on-year.
In other developments, IREN Ltd. (NASDAQ:IREN) recently earned bullish coverage from investment firms HC Wainwright and Bernstein, both issuing the company a “buy” recommendation.
IREN Ltd. (NASDAQ:IREN) received an $80 price target from HC Wainwright, marking a 38 percent upside potential from its latest closing price. Meanwhile, Bernstein cut its price target by 40 percent to $75 from $125 previously, but the new figure still represented a 30 percent upside potential.
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 have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
