The recent stock market comeback—and Thursday’s selloff—highlight the challenges of market timing. Calling a bottom or a top in real time is next to impossible.
The Nasdaq has jumped 95% since early 2020. This stellar return includes the lightning-quick COVID bear market and the prolonged 2022 bear market.
The recent rally, even if it’s followed by another drawdown, underscores the need to stay constantly exposed to the stock market.
Today, we dive into two beaten-down technology stocks that offer long-term exposure to artificial intelligence expansion.
Buy This Speculative Data Center Stock for AI and Bitcoin Growth
Right off the bat, investors must know that buying IREN Limited (IREN) stock is a home-run swing—which means you could easily strike out.
The $7-per-share stock trades 185% below its average Zacks price target, offering exposure to growth across three critical megatrends: Bitcoin mining, AI data center expansion, and renewable energy growth. Plus, IREN has a strong balance sheet, and its growth outlook is impressive.
Image Source: Zacks Investment Research
IREN owns and operates data centers powered by 100% renewable energy. The company’s core business revolves around Bitcoin mining and high-performance computing solutions, such as AI. Bitcoin mining drives nearly all of its sales at the moment, but IREN sees huge upside in AI data centers and other power-dense computing applications.
IREN’s data centers in the U.S. and Canada are powered by a combination of hydro, wind, and solar. Its growth runway is massive because AI hyperscalers and the entire tech world are racing to power their energy-intensive growth plans with as many non-fossil-fuel sources as possible.
Image Source: Zacks Investment Research
IREN posted 150% revenue growth in FY24, with Q2 FY25 sales up 125%, fueled by a 129% surge in Bitcoin mining. The firm’s huge beat-and-raise quarter lifted its FY25 consensus EPS estimate by 533% (from $0.06 to $0.38), with its FY26 estimate 26% higher. IREN’s upbeat outlook earns it a Zacks Rank #2 (Buy).
IREN is projected to swing from an adjusted loss of -$0.29 per share last year to +$0.38 in FY25, then skyrocket 271% in FY26. The company is expected to support this bottom-line growth with 200% and 85% sales expansion in FY25 and FY26, respectively, reaching $1.04 billion in fiscal 2026.
IREN has a strong balance sheet, with $456 million in cash and equivalents, $1.85 billion in total assets, and just $566 million in total liabilities. This backdrop explains why 11 of the 12 brokerage recommendations tracked by Zacks are “Strong Buys.”
Image Source: Zacks Investment Research
IREN went public in November 2021, near the peak of the massive tech-driven bull run. It now trades 73% below those levels and 56% below its 52-week highs from December 2024. The stock has been extremely volatile over the past two years, yet it’s up 145%, blowing away the Nasdaq’s 52% run.
It was recently rejected at its 21-day moving average and might find support near the low end of its year-long trading range. IREN trades at a 67% discount to its industry and 75% below the Tech sector, at 6.4X forward earnings.
Buy This Tech Stock for Value, Strong Dividend Yield, and AI Growth
Opera Limited’s (OPRA) focus on AI-driven content discovery and privacy tools positions it to capture a growing share of the rapidly changing online ecosystem, where Google search is quickly becoming a thing of the past.
Norway-based technology firm Opera is a leading web browser provider. Opera, which went public in the U.S. in 2018, has pivoted with the times toward AI-driven content discovery and online services.
The company boasts that its Opera Browser is “faster, safer, and smarter than default browsers,” focusing on AI, privacy, security, and more. Opera is rolling out hyper-personalized, AI-focused digital experiences.
Image Source: Zacks Investment Research
The most up-to-date version of Opera Browser includes browser AI, “Tab Islands,” smooth animations, and more. Opera’s free browser AI, Aria, helps users with everything from shopping to searching. On the safety front, Opera offers a free VPN and options to “protect your entire device for just $4 per month with VPN Pro.”
Opera is a subsidiary of Kunlun Tech Limited, one of China’s leading internet platforms with a strong online-gaming focus. Speaking of gaming, Opera GX is a “gaming browser” that helps keep gameplay smooth by limiting RAM and CPU usage. The company is also aiming to attract more users by helping them create and develop their own games with the help of AI.
Opera closed 2024 with 296 million average monthly active users, with annualized ARPU up 37% year over year, and total FY24 revenue up 21% to $480.7 million. Fourth-quarter search revenue growth increased to 17%, benefiting from continued growth among critical “Western and GX browser users.”
Image Source: Zacks Investment Research
Opera’s upbeat outlook helped its FY25 consensus earnings estimate jump 32% and its FY26 outlook surge 27% since its Q4 release. These positive revisions earn OPRA stock a Zacks Rank #1 (Strong Buy).
Opera is projected to grow its revenue by 18% in 2025 and 16% in 2026, helping boost its adjusted earnings by 39% and 29%, respectively.
Opera shares are down 37% from their summer 2023 peaks and are trying to find support near their 21-day moving average. OPRA stock matched the Tech sector over the last 12 months and crushed it during the past five years (+235% vs. +156%).
Image Source: Zacks Investment Research
Despite its long-term outperformance, the web browser stock trades at a 44% discount to the Tech sector, at 14.1X forward 12-month earnings. Alongside its solid value, Opera pays a dividend that yields roughly 4.4% right now—about the same as the yield on the 10-year U.S. Treasury.
— Benjamin Rains
Want the latest recommendations from Zacks Investment Research? [sponsor]Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report.
Source: Zacks
