IREN stock price has staged a strong comeback as artificial intelligence companies continue raising billions in funding and as traders wait for its upcoming earnings.
Summary
- IREN stock has staged a strong rebound in the past few weeks.
- Wall Street analysts are optimistic about the company ahead of its earnings.
- Nvidia invested an additional $2 billion in CoreWeave this week.
IREN shares jumped by 15% on Tuesday, January 27, reaching their highest level since November 10 and 80% above their lowest level in December last year.
One potential reason behind the rally is that CoreWeave, a top competitor, raised an additional $2 billion from Nvidia. This investment made Nvidia one of its biggest investors. It is also a sign that the company expects demand for AI data centers to continue rising.
IREN stock also rose amid rising speculation that it will gain a big customer in the coming weeks or months. One name mentioned by analysts is Anthropic, a company raising $20 billion at a $350 billion valuation.
IREN received its first big deal last year when Microsoft selected its services in a $9.7 billion deal. More companies, such as Anthropic, Amazon, and Meta Platforms, may also decide to use its data centers as the AI boom continues.
Meanwhile, Wall Street analysts are highly bullish on IREN stock ahead of its upcoming earnings. Mike Colonnese, a top analyst at HC Wainwright, moved his rating from sell to buy and boosted his target to $80. Greg Miller of JMP Securities sees the stock rising to $80, while Joseph Vafi raised to $70.
Wall Street analysts are optimistic about its upcoming earnings. Data compiled by Yahoo Finance show that revenue for the upcoming period will be $227 million, up by 90% from the same period in 2024.
The average estimate for the current quarter is $280 million, up by 90%. Its annual revenue is expected to be $1.15 billion, followed by $2.7 billion.
IREN stock also jumped as Bitcoin (BTC) rose for three consecutive days, reaching a high of 90,000. This increase is significant because IREN still generates most of its revenue from the Bitcoin mining industry.
IREN stock price technical analysis
The daily timeframe chart shows that IREN stock has rebounded over the past few weeks, moving from a low of $33.54 in December to $60. This rebound happened after it formed an inverted head-and-shoulders pattern, a common bullish reversal sign.
IREN has remained above the 50-day and 100-day Exponential Moving Averages and the Supertrend indicator. It has moved above the upper boundary of the Murrey Math Lines trading range.
The Average Directional Index has continued to rise and is now at its highest level since November, a sign that momentum is continuing.
Therefore, the stock will likely continue rising as bulls target the all-time high at $76, which coincides with the ultimate resistance level. This target is nearly 30% above the current level.
