IREN vs. NBIS: Which High-Growth Mid-Cap Stands Out Right Now?

Momentum investors have a lot to dig through after an explosive tech-led surge from those now-distant Liberation Day lows. Indeed, the tech rally is back online and could help pull the S&P to new record highs steadily through the remainder of the year. And while September and October are typically a choppy period, as investors return from summer vacations, perhaps looking to take profits in their biggest winners, I do think more volatility means more opportunity for investors to buy dips in some overheated stocks that are long overdue for a pullback.

Such pullbacks are an expected part of being a high-growth investor in the fast lane. In any case, this piece will check out two AI infrastructure plays that could be worth keeping on the radar as we head into the most volatile time of the year.

IREN Limited

IREN Limited (NASDAQ:IREN) is a hyper-growth mid-cap with a $4.4 billion market cap that’s gained the attention of momentum traders after bouncing 177% in the last three months. Indeed, IREN stock has been quite a turbulent ride over the years, experiencing massive moves in both directions. Indeed, sudden 100% surges and 50% drops are not uncommon for the name in recent years.

In any case, the data center owner and operator could be in the early innings of its fierce bull market after shifting gears from Bitcoin mining to capitalizing on the AI revolution. Indeed, as demand for high-performance computing continues to rocket higher going into the second half, IREN’s shift could prove incredibly wise.

Perhaps the most impressive part of the IREN story is that its data centers are powered by renewable energy sources. Though the latest melt-up has been a shocker of sorts, shares aren’t as expensive as you’d think, currently going for 28.8 times forward price-to-earnings (P/E). It’s a profitable firm that could become vastly more profitable as Bitcoin prices soar hand-in-hand with demand for green AI computing power.

If you’ve got the stomach to hold onto the stock through volatile periods (shares have a 4.0 beta, which entails a rocky ride), I’m not against holding the name for the long haul. Personally, I’d be more interested if shares were to correct, perhaps as a part of a broad market sell-off for the start of fall. Either way, IREN stock is a name to keep watch on if you’re on the hunt for hyper-growth in the mid-cap universe.

Nebius Group

Nebius Group (NASDAQ:NBIS) is another AI cloud computing play that has an exceptionally high growth ceiling. The company has a $12.5 billion market cap and has quietly experienced a 113% melt-up in the last three months. Although unprofitable, the high-growth AI infrastructure play appears to be well-positioned to achieve profitability within a few quarters. In any case, as demand for “all-in-one” AI cloud platforms begins to really heat up, I wouldn’t at all be surprised if NBIS stock has what it takes to extend its run.

Personally, I’d much rather wait until after the company breaks into profitability before taking a chance on shares. Things may be looking up for the firm, as it feels those prominent AI tailwinds at its back. Still, I’d be inclined to favor IREN slightly over NBIS, primarily due to its profitability and powerful one-two growth combo (Bitcoin mining plus AI data center investments).

If you’re going to place a bet on either name, though, do be ready to ride out the waves and have a backup plan if the high-momentum AI data center trade heads south for the end of summer.

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