IREN Limited (IREN) is having a good Friday. The stock jumped 8.48% in premarket trading after the company announced a partnership with Nvidia (Nvidia) that could be worth up to $2.1 billion. Under the deal, Nvidia can purchase up to 30 million ordinary shares at $70 each. That's a nice vote of confidence from one of the most important companies in tech.
The deal highlights the insatiable demand for AI infrastructure, which is exactly what IREN is building. The company runs data centers powered by renewable energy, and it's been pivoting hard from Bitcoin mining to AI cloud services. Investors seem to like the story, even if the numbers aren't quite there yet.
Earnings Snapshot
IREN reported quarterly revenue of $144.8 million, which missed analyst expectations of $223.4 million by a wide margin — 35.18%, to be precise. Revenue also dropped 21.6% compared to the same period last year, when it was $184.7 million. The culprit? Lower Bitcoin prices and reduced mining capacity. It's a reminder that IREN still has one foot in the crypto world, even as it races toward AI.
On the conference call, management highlighted some bright spots. The company increased its secured power capacity to 5 gigawatts, added new sites in Europe and Asia-Pacific, and started commissioning Horizon One GPUs for Microsoft (Microsoft). They also said all operational capacity is fully contracted, and demand is outstripping supply.
"We are in the process of negotiating large-scale AI Cloud deployments across our 2027 capacity today. Demand is not the constraint, however. It is highly unlikely to be the constraint," said cofounder Daniel Roberts. That's a bold statement, but it fits the narrative that AI infrastructure is the new gold rush.
IREN is also expanding geographically. "We're expanding the platform into Europe through Spain. Today, we announced the acquisition of Nostrum Group and with it our entry into Europe," the company said.
Technical Analysis
The stock has been on a tear. Over the past 12 months, IREN is up 725.11%. That's not a typo. It's currently trading well above its moving averages: 26.4% above the 20-day SMA, 42.6% above the 50-day SMA, and 43.4% above the 200-day SMA. The MACD indicator is above its signal line, suggesting momentum is improving.
Key levels to watch: resistance at $63.50, where rebounds could stall, and support at $48.41, which aligns with the 20-day SMA.
Analyst Outlook
Analysts are bullish overall, with a consensus Buy rating and an average price target of $68.57. Recent moves include:
- BTIG: Buy, raised target to $80.00 (May 8)
- Cantor Fitzgerald: Overweight, lowered target to $61.00 (April 9)
- Canaccord Genuity: Buy, maintained target at $70.00 (February 10)
MarketDash Edge Rankings
MarketDash's Edge scorecard gives IREN a mixed picture. The stock scores a weak 13.67 on Value, meaning it's trading at a steep premium relative to peers. But Momentum is off the charts at 98.93, indicating the stock is outperforming the broader market.
The Verdict: IREN is a momentum-driven story, but the value ranking suggests caution. The stock is performing well, but investors should be aware of potential overvaluation.
Top ETF Exposure
IREN has significant weight in the Global X Blockchain ETF (BKCH) at 11.45%. That means any inflows or outflows from that ETF will likely force automatic buying or selling of IREN shares.
Stock Price Activity: IREN shares were up 8.18% at $61.50 during premarket trading on Friday.
