The "Magnificent Seven" stocks are the most recognized tech giants, and they are all worth more than $1 trillion. These companies have been some of the best investments during the past decade, but they have now become easier to beat.
AI stocks with smaller market caps and higher revenue growth have a shot to outperform the Magnificent Seven by 2030. It doesn't take as much profit growth to move stocks with low market caps.
Nvidia's year-to-date performance won't change much if it gains an extra $10 billion in market cap. However, that same return would be a game changer for investors in IREN (IREN 1.45%), with a market value of $17 billion. The AI infrastructure play is gaining momentum but remains relatively unknown, and it's poised to outperform the Magnificent Seven.
IREN's competitive advantage in AI infrastructure
Image source: Getty Images.
IREN is a crypto miner that pivoted to AI infrastructure. Its data centers are uniquely equipped to handle AI workloads, and it has a 3 gigawatt pipeline ready to go. Energy has become a major bottleneck for AI innovation, and IREN is one of the key stocks that has plenty of AI-ready energy.
NASDAQ: IREN
Key Data Points
OpenAI said in a blog post that its computing activity has roughly tripled each year from 2023 to 2025. During that span, the company's power demands went from 200 megawatts to 1.9 gigawatts, or 1,900 megawatts.
OpenAI's revenue also surged, rising from $2 billion in 2023 to $20 billion in 2025. There is a direct correlation between more computing capacity and higher revenue growth.
IREN provides the necessary AI infrastructure. Although it's not the only company in the industry, it has a crucial advantage: It has secured land and gigawatt capacity that will be ready to go before the competition.
Its 1.4 gigawatt Sweetwater 1 site in Texas will be starting up in April, while its 600 megawatt Sweetwater 2 site, also in Texas, is due in 2027.
Cipher Mining is moving at a slower pace, with the addition of of 100 megawatts and 70 megawatts projected in 2026 and 2027, respectively. It's only in 2028 when Cipher is expected to add another 2.5 gigawatts, but IREN is further along.
Nebius is another notable competitor that is projected to have as much as 1 gigawatt of connected power by the end of 2026. IREN is prepping its data centers faster than the competition while having a multi-gigawatt development pipeline.
The demand for AI will continue to grow
The OpenAI blog post showed a direct correlation between gigawatts and revenue, but that's not the only bullish sign for the industry. Meta Platforms announced a computing initiative that involves building tens of gigawatts this decade. That's just a starting point, with Chief Executive Officer Mark Zuckerberg on board for hundreds of gigawatts in the years ahead.
OpenAI likely has similar ambitions as it battles for AI supremacy. ChatGPT's parent company closed 2025 with 1.9 gigawatts, so it will need a lot more computing power to compete with Meta Platforms. Microsoft has also stated its intent to expand its AI computing capabilities while referring to AI infrastructure as the next Industrial Revolution.
Amazon and Alphabet have been securing deals for added AI computing capacity. Elon Musk's xAI has also built its own AI data centers, but recently hit a snag when the Environmental Protection Agency closed one of the loopholes that allowed the company's gas-powered energy source in Tennessee.
The world's largest companies want AI computing capacity, and many countries are also investing in it. Gigawatts will be in high demand, and IREN is leading the competition. Tech giants have committed to spending more on AI this year than in 2025, and IREN looks like one of the biggest winners that should outperform the Magnificent Seven.
