The stock price of IREN surged by over 2%, nearing its all-time peak, following a significant $14 billion agreement between Meta Platforms and CoreWeave, along with an optimistic report from Citi regarding AI expenditure.
Summary
- The IREN stock price rose sharply after a major agreement between Meta Platforms and CoreWeave.
- Meta is set to acquire AI computing capabilities from CoreWeave in a deal valued at $14 billion.
- IREN stock spiked as investors anticipated a comparable agreement with a hyperscaler.
IREN, a well-known Bitcoin (BTC) mining firm, climbed to $46.80, just below its all-time high of $49. This represents an impressive 870% increase from its lowest price this year, boosting its market cap to over $14 billion.
The rise in IREN shares follows Meta Platforms, the parent company of Facebook and WhatsApp, finalizing a $14 billion agreement with CoreWeave. Meta aims to leverage CoreWeave’s infrastructure to expedite its AI initiatives.
This agreement occurred a few weeks after Microsoft sealed a similar deal with Nebius. Consequently, IREN stock is experiencing a surge as investors predict analogous deals in the upcoming months as the company escalates its AI data center developments.
According to a report released today, Citigroup has revised its forecast for AI data center investments. The Wall Street firm now projects that major tech companies will invest $2.8 trillion in AI data centers by 2029, up from an earlier prediction of $2.3 trillion.
Citi also anticipates that leading hyperscalers, including Microsoft, Amazon, Meta, and Google, will allocate $490 billion by the end of 2026, an increase from the previous estimate of $420 billion.
If these forecasts prove accurate, firms providing AI infrastructure solutions, like IREN, are poised for continued strong performance in the foreseeable future.
In a recent announcement, IREN indicated that it has doubled its AI cloud capacity to 23,000 Nvidia and AMD GPUs, aiming to establish itself as a key player in the market. The company’s short-term goal is to achieve approximately 60,000 GPUs.
Notably, it aims for an annualized revenue run rate of $500 million by Q1 2026, a significant leap for a sector that only generated $7 million in revenue in the last quarter.
Technical Analysis of IREN Stock Price
The daily chart indicates that IREN’s stock price has showcased a robust upward trend over the last several months, escalating from a low of $4.96 in April to $46 today, increasing its market capitalization to over $12 billion.
IREN’s stock price has consistently stayed well above all moving averages, while the rising Average Directional Index suggests that the trend is gaining strength.
However, IREN’s shares have become quite overbought, as reflected in the rising Relative Strength Index and Stochastics.
As a result, the most probable scenario is that the stock continues to rise as AI momentum builds and traders wait for a potential deal with a hyperscaler. That said, a minor pullback cannot be excluded in the short term as investors start to realize profits.
