Overview
- The company said a new partnership will expand GPU capacity for its AI cloud services, lifting IREN shares in after-hours trading.
- During Monday’s regular session the stock fell again, underscoring sharp swings even as investors reacted positively to the partnership headline.
- B. Riley noted IREN is down about 47% from its Nov. 5 peak yet maintained a buy rating and $74 price target, calling the pullback a reset in sentiment rather than fundamentals.
- The bank outlined roughly $11.6 billion in planned HPC capex with an estimated $2.7 billion funding gap against about $8.85 billion already identified, including Microsoft’s 20% prepayment and recent convertible and equity raises.
- Background: IREN’s pivot centers on a five-year, roughly $9.7 billion Microsoft GPU cloud arrangement deploying Nvidia GB300 systems at its Childress, Texas campus, while some large holders such as Tudor Investment have recently taken profits.