Dan Ives is undoubtedly one of the top analysts in the market that I follow closely. I’m fully aware that Mr. Ives is one of the most bullish analysts on the market. However, I think his views on many of the top high-growth tech stocks make sense as they provide ballast for investors who (like me) may be more bearish right now.
While I fully realize that valuations are historically extremely high, that doesn’t mean this bull market has lost steam. Dan Ives said the same thing, highlighting some key stocks that could do well in 2026, driven by what he believes will be increased buying activity in certain high-growth companies at the forefront of the artificial intelligence revolution.
Let’s take a deeper look at one company – Allen (IREN) – and why Ives is so bullish on the name.
Dan Ives said in his recent report that the noteworthy AI infrastructure buildout we’ve seen so far is likely to accelerate into 2026 and beyond. That’s because he sees a big monetization advantage for companies like Allen’s, which are behind a revolution that he sees as transformative for the entire economy.
If we see the tech industry see the growth Ives anticipates as AI deployment continues (his forecast is for roughly 20% growth next year), then the fundamental thesis behind companies like Iren may come to light. With overall margins positive and a price/cash flow ratio of about 66x, investors can choose this name now with a cash flow yield of about 1.5%.
Of course, IREN stock isn’t cheap, trading at 27 times sales. Those are nosebleed levels in my book.
But if this data center buildout is as big as Dan Ives and others imagine, then the valuation may be cheap relative to investors’ future cash flows and earnings. I have long believed that many of the top high-performance chipmakers in the market were expensive until their cash flow and profitability exploded. The argument made by Ives and others is that data center players like Allen may find themselves in a very similar situation over time.
Now, Dan Ives is far from the only analyst on Wall Street keeping an eye on top data center names like Iren. In fact, there are a total of 13 analysts covering the stock, and the consensus among these financial experts is that IREN stock could reach the $85 level within the next year or so.
If Dan Ives and others are correct, that’s a very impressive 101% upside from current levels. Given the high price target of $136 per share (meaning IREN stock has nearly tripled over the same period), it’s clear that most Wall Street analysts are currently hedging on the bullish side.
This makes sense given that the underlying growth fundamentals supporting these valuations remain in place. There is always a risk associated with a potential market shock, which could result in a decline in the share price of the entire group. Today’s nasty 12%+ drop may be an anomaly, as none of its peers are hurting that much right now and are still up nearly 50% over the past three months. But if Ives and others are right that the much-touted “artificial intelligence bubble” fears are overblown, then this is the stock that growth investors will want to keep an eye on.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any securities mentioned in this article. All information and data in this article are for reference only. This article was originally published on Barchart.com