IREN stock price jumped by more than 2% and approached its all-time high after a major $14 billion deal between Meta Platforms and CoreWeave and after a bullish report on AI spending from Citi.
Summary
- IREN stock price soared after a big deal between Meta Platforms and CoreWeave.
- Meta will buy AI computing power from CoreWeave in a $14 billion deal.
- IREN jumped as investors predicted a similar deal with a hyperscaler.
IREN, a popular Bitcoin (BTC) mining company, jumped to $46.80, a few points below the all-time high of $49. It has advanced by 870% from its lowest level this year, bringing its market capitalization to more than $14 billion.
IREN shares jumped after Meta Platforms, the parent company of Facebook and WhatsApp, inked a $14 billion deal with CoreWeave. Meta will take advantage of CoreWeaves infrastructure to accelerate its AI development.
The deal came a few weeks after Microsoft reached a similar deal with Nebius. Therefore, IREN stock is soaring as investors anticipate similar deals in the coming months as it ramps up construction of its AI data centers.
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In a report published today, Citigroup raised its estimate of AI data center spending. The Wall Street bank now expects that technology giants will spend $2.8 trillion on AI data centers by 2029, up from its previous estimate of $2.3 trillion.
Citi also expects that the top hyperscalers, such as Microsoft, Amazon, Meta, and Google, will spend $490 billion by the end of 2026, up from the previous estimate of $420 billion.
If these estimates are correct, it means that companies providing AI infrastructure solutions, such as IREN, will continue to perform well in the foreseeable future.
In a recent statement, IREN said that it had doubled its AI cloud to 23k Nvidia and AMD GPUs as it seeks to become a major player in the industry. Its near-term target is to have about 60,000 GPUs.
Most importantly, it hopes to reach an annualized run rate of $500 million by Q1 2026, a large figure for a segment that generated just $7 million in revenue in the last quarter.
IREN stock price technical analysis
IREN stock chart | Source: crypto.news
The daily timeframe chart shows that the IREN share price has been in a strong uptrend over the past few months, moving from a low of $4.96 in April to $46 today, bringing its market capitalization to more than $12 billion.
IRENs share price has remained significantly above all moving averages, while the rising Average Directional Index shows that the trend is gaining momentum.
However, IRENs stock has become highly overbought as the Relative Strength Index and Stochastics have risen.
Therefore, the most likely scenario is that the stock continues rising as AI momentum accelerates and as traders wait for a potential deal with a hyperscaler. However, a smaller pullback cannot be ruled out in the near term as investors begin to book profits.