Iren, Netlist named top AI stocks to buy and hold

Iren's latest quarterly revenue fell 27% year over year, but the contributor frames that decline as a temporary dip because the company is on track to reach $4 billion in annual recurring revenue by the end of the calendar year. The bull case rests on Iren's AI data centers serving hyperscalers and its long-term deals with Microsoft, Nvidia, and various AI enterprises, which the contributor treats as customer validation. As capacity comes online, including an additional 800 megawatts planned for 2027, prepayments from large customers are expected to cover a large percentage of capital expenditures.

Netlist's path is different: it trades over-the-counter after management chose delisting from Nasdaq in 2018 rather than a reverse stock split. Its shares have risen more than 500% year to date to around $5.50, helped by memory product sales and royalties. The main catalyst is litigation. A five-year Samsung deal pays roughly $27.5 million per quarter, plus a $200 million up-front license fee and the ability to buy $300 million in memory products annually for the next five years. Netlist has a similar arrangement with SK Hynix that it expects to renew this year, while Micron remains a holdout.

For readers, the takeaway hinges on whether Iren converts its pipeline into revenue and whether Netlist's patent disputes against Micron end in a lucrative settlement or verdict. The contributor sees a $445 million verdict and a new U.S. International Trade Commission investigation as signs of a coming resolution, and a future Nasdaq relisting as a possible rerating event, though neither is assured.