IREN Limited (NASDAQ:IREN) shares got a nice boost Wednesday as traders chewed over a fresh industry report that puts the company at the top of the AI infrastructure food chain when it comes to making money from its megawatts. The broader market was mixed, with the Nasdaq up 0.19% and the S&P 500 gaining 0.51%, while the tech sector dipped 0.4%.
Investors are also looking ahead to IREN's earnings report, due August 27. Analysts are modeling a loss of 63 cents per share, a slight improvement from the 66-cent loss in the same quarter last year. Revenue is expected to come in at $1.4 billion, down from $1.9 billion a year earlier. The stock currently trades at a P/E multiple of 54.5 times.
Top Ranking In Revenue Efficiency
The catalyst was a Neocloud Efficiency Ledger published Monday by research firm The Futurum Group. The report ranked high-performance computing providers by contracted revenue per megawatt, and IREN came out on top. Daniel Newman, CEO of The Futurum Group, highlighted on X that IREN led the industry with an estimated $40 million in contracted revenue per megawatt.
Outpacing Neocloud Competitors
That $40 million figure puts IREN ahead of Galaxy Digital Holdings at roughly $29 million and CoreWeave Inc. at approximately $28 million. Other ranked peers included Hut 8 Corp., Applied Digital Corp., TeraWulf Inc., Nebius Group N.V. and Core Scientific Inc.
Futurum estimates IREN holds a total $14 billion contracted revenue backlog, including major agreements with Microsoft Corp. (NASDAQ:MSFT) and NVIDIA Corp. (NASDAQ:NVDA). The firm also noted IREN controls a 5-gigawatt total power footprint, with only 350 megawatts currently contracted for AI workloads. That suggests a lot of room to grow.
IREN Stock: Key Technical Levels To Watch
From a technical standpoint, IREN is showing what you might call a "short-term rebound inside a still-damaged intermediate trend." The stock is trading about 8.4% above its 20-day simple moving average (SMA) of $39.58, but it's still about 2.4% below its 50-day SMA of $43.98 and roughly 8% to 9% below its 100-day and 200-day SMAs. The death cross that formed in August (when the 50-day SMA fell below the 200-day SMA) keeps the bigger-picture trend cautious until price can reclaim and hold above those longer averages.
Momentum is neutral right now. The Relative Strength Index (RSI) sits at 52.10, which tells traders the stock isn't stretched and is still in a zone where either a continuation move or a fade can develop quickly.
- Key Resistance: $43.50
- Key Support: $37
IREN Stock Price Activity: IREN shares were up 3.23% at $43.36 at the time of publication on Wednesday.
