The Only 2 Artificial Intelligence (AI) Stocks I'd Buy With $1,000 Today and Never Sell

The Only 2 Artificial Intelligence (AI) Stocks I'd Buy With $1,000 Today and Never Sell

When I invest in artificial intelligence stocks, I look for low-market-cap companies with high revenue growth. That basic formula points me toward growth stocks that haven't yet become household names. That strategy explains why these two AI stock picks are among the largest positions in my portfolio. If you have $1,000 (or more) that you're ready to put to work in the stock market today, they're worth a look.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Iren (NASDAQ: IREN) builds AI data centers that provide critical compute for hyperscalers. It has already signed long-term deals with Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and various AI enterprises. That customer validation and Iren's knack for building AI data centers on time position it as one of the top neoclouds.

A look at the key numbers indicates how big its opportunity could become. Iren reported $137.2 million in revenue for its fiscal 2026 fourth quarter, which ended June 30. That was down 27% year over year, and that fact in isolation might make Iren seem like a bad business to invest in. However, it's on track to reach $4 billion in annual recurring revenue by the end of the calendar year. That means the revenue growth rate will go up substantially in future quarters.

Iren's revenue comes from providing AI compute capacity to tech leaders. It's getting annual contract values above $20 million per megawatt, with short-term deals currently being negotiated at $25 million per megawatt. Iren has a 5,800-megawatt pipeline, so once all of the projects it's developing are brought online, the entire portfolio could generate $145 billion in annual recurring revenue, assuming the $25-million-per-megawatt rate holds.

Megawatt prices have more than doubled in less than a year, so the types of contracts Iren can command may be much higher by the time it brings capacity online. Iren is on track to deliver an additional 800 megawatts in 2027, with large customer prepayments covering a large percentage of capital expenditures.

Netlist (OTC: NLST) trades as an over-the-counter (OTC) security rather than being listed on a national exchange. Back in 2018, when its share price sank consistently below $1, management chose to allow the company to be delisted from the Nasdaq rather than performing a reverse stock split. Today, after a year-to-date gain of more than 500%, it trades at around $5.50.