Analysts Have Initiated Coverage of AI Service Firms

Northland Equity Capital Markets issued Outperform ratings for four major AI-as-a-service providers.

Updated on Sept. 19, 2026 in Artificial Intelligence

Analysts Have Initiated Coverage of AI Service Firms

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Northland Equity Capital Markets has launched coverage on Iren, Boost Run, ChronoScale, and SharonAI with Outperform ratings. The firm issued price targets for all four companies as investor interest in AI computing power intensifies.

Why it matters

The move reflects ongoing supply shortages in the AI-as-a-service sector, where demand for computing power continues to outpace available capacity. This market imbalance has contributed to a 33% increase in hourly rental fees for computing power since December 2025.

Northland set price targets of $99 for Iren, $95 for SharonAI, $36 for Boost Run, and $32 for ChronoScale. The AI-as-a-service market is projected to grow from an estimated $853 billion in 2027 to $4 trillion by 2034.

The players

Northland Equity Capital Markets

This is a financial services firm that provides investment research and capital markets coverage to institutional clients.

J.P. Morgan

This is a global financial services institution that provides investment banking, financial services for consumers and small businesses, and commercial banking.

Iren

This company is an AI-as-a-service provider that sells computing power and management software to developers.

The details

Neocloud providers operate by selling raw AI computing power to businesses and developers, often adding proprietary software management layers to optimize performance. J.P. Morgan also recently upgraded Iren stock from Underweight to Overweight, contributing to a 2.8% rise in the company's share price on Friday.

December 2025: Hourly rental fees for computing power began increasing.
September 14, 2026: J.P. Morgan upgraded Iren stock.
September 17, 2026: Iren stock closed at $43.48.
September 18, 2026: Northland Equity Capital Markets initiated coverage.
2034: The AI-as-a-service market is projected to reach $4 trillion.

The Tech Race

The current market activity highlights the persistent AI-as-a-service supply-demand imbalance, which has driven rental costs higher across the industry. This trend suggests that infrastructure capacity is now a central battleground as firms compete for dominance in the $4 trillion AI market.

As rental fees for computing power rise, businesses and developers using these services may face increased operational costs for their AI projects. Consumers should monitor whether these price hikes are passed down to end-users of AI-driven applications and services.

The takeaway

The sustained rise in computing rental fees indicates that infrastructure costs remain a critical factor for AI profitability. Investors and developers should monitor how these price pressures influence the long-term viability of AI-as-a-service business models.