Key Insights
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September’s notorious weakness presents attractive investment opportunities in three distinct sectors: AI data centers, sports betting, and managed healthcare.
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Iren has experienced a remarkable 188% increase year-to-date, reflecting strong demand for AI infrastructure, while DraftKings is poised to take advantage of the NFL season’s momentum.
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UnitedHealth’s decline amid DOJ investigations led Warren Buffett to invest $1.6 billion, indicating significant value at a forward earnings multiple of 18.8.
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Here are 10 stocks we believe are better investments than Iren ›
September often carries a negative reputation as the historically weakest month for stock performance. Since 1928, the S&P 500 has seen an average decline of 1.2% in September, with the market falling in 56% of those years. Factors like Federal Reserve policy reviews, end-of-fiscal-year budget deliberations, and post-summer portfolio adjustments contribute to the perception that it’s a month to steer clear of.
However, while many investors pull back, contrarian thinkers are spotting exceptional opportunities in three fundamentally distinct companies: one focused on AI infrastructure that’s surged by 188%, a digital entertainment platform well-situated for the NFL season, and Warren Buffett’s latest healthcare bet trading at multi-year lows.
The AI Boom Meets Bitcoin’s Infrastructure
Iren Limited (NASDAQ: IREN) has shifted away from its previous crypto focus and is now investing heavily in AI data centers. The market is beginning to recognize its potential. Up 188% year-to-date (as of September 1, 2025) and trading at 31 times forward earnings, Iren has repurposed its extensive power grid, initially developed for Bitcoin mining, towards more lucrative AI computing applications.
The company has an impressive infrastructure with 2.9 gigawatts of contracted power across renewable-heavy areas in Canada and Texas. While competitors are struggling to establish new power sources for AI data centers, Iren can leverage its existing capacity. Its fiscal Q4 2025 results revealed revenues of $187 million, with a full-year increase of 168%, resulting in total revenues of $501 million and a turnaround from a $28.9 million loss to an $86.9 million profit.
The Rise of America’s Entertainment Economy
DraftKings (NASDAQ: DKNG) is capitalizing on perfect timing, with its stock climbing 27.2% year-to-date and trading at 35 times forward earnings as the NFL season kicks off, which serves as the company’s primary growth driver.
DraftKings’ Q2 2025 figures exhibited impressive momentum, with a 37% year-over-year revenue uptick to $1.5 billion and a net income rise to $158 million. With strong user growth and an increase in revenue per user, the company is predicting a full-year revenue between $6.2 billion to $6.4 billion, along with an EBITDA of $800 million to $900 million.
The NFL season represents a significant opportunity for user acquisition, and with millions of potential customers in states like Texas and California still unregulated, DraftKings is positioned well for continued growth.
Buffett’s Bold Healthcare Move
UnitedHealth Group (NYSE: UNH) is having a challenging year, down 38% since the start of 2025. This is compounded by a Department of Justice investigation into its Medicare billing practices and mounting medical costs affecting its margins. However, this type of turmoil can present exceptional value opportunities.
Warren Buffett’s Berkshire Hathaway recently invested $1.6 billion into 5 million shares, indicating a strong belief in the company’s long-term value. At a forward earnings ratio of 18.8, which is among the lowest in years, Buffett perceives a fundamentally strong business at a low price. Despite lowered guidance for adjusted earnings in 2025, recovery is anticipated in 2026, potentially offering significant upside for investors combining Buffett’s confidence with a favorable entry point.
Should You Invest in Iren Now?
Before investing in Iren, be sure to consider this:
The Motley Fool Stock Advisor team identified what they believe are the 10 best stocks to buy now, and Iren wasn’t included in that list. Those featured stocks represent potential high returns.
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George Budwell holds positions in Berkshire Hathaway, Bitcoin, Nvidia, and UnitedHealth Group. The Motley Fool has holdings in and recommends Berkshire Hathaway, Bitcoin, and Nvidia, as well as UnitedHealth Group.
