IREN

Leveraged ETFs posted huge gains last week despite a weak market, driven by rallies in crypto, AI infrastructure, defense and energy-related stocks.

IREN's contracted AI cloud growth and financing edge make it a stronger choice than Strategy's leveraged Bitcoin model and dilution risks.

IREN (NASDAQ:IREN) and Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) just posted quarters that expose two very different neocloud playbooks.

I rate IREN Limited a Strong Buy with a $49 price target, implying 20% upside from current levels. My three modeled growth drivers are the 2026 AI Cloud revenue ramp, the additional 730MW planned for 2027, and lower financing costs from customer prepayments. Together, I estimate these drivers can produce approximately $2.03 in FWD non-GAAP adjusted EPS.

Approximately 85% of IREN Limited's targeted $4 billion AI Cloud ARR is backed by signed multi-year contracts, materially improving revenue visibility. Customers now prepay roughly 45% of GPU deployment costs, while a $3.65 billion financing facility reduces future equity dilution risk. Consensus forecasts $728 million in FY2026 revenue despite IREN management targeting over $4 billion ARR, creating a meaningful valuation disconnect if execution succeeds.

Class A shares of the Alger Capital Appreciation Fund outperformed the Russell 1000 Growth Index during the second quarter of 2026. Nebius Group has positioned itself as a leading next-generation cloud provider purpose-built for machine learning and high-performance computing workloads. Netflix's shares detracted from performance during the quarter despite first-quarter results that beat on revenue and held full-year guidance intact.

IREN's expanding AI cloud contracts, secured power and rapid buildout strengthen its growth case, but funding and execution risks support holding the stock.

IREN lands $2.8B in new multi-year AI cloud contracts and lifts its 2026 ARR target above $4B as demand fuels capacity expansion and growth in Europe.

IREN TodayIRENIREN$41.94 +1.74 (+4.33%) As of 10:40 AM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$14.72▼$76.87P/E Ratio87.73Price Target$82.36Add to WatchlistIREN Limited NASDAQ: IREN recently sent a signal to the broader equity markets.

IREN Limited (IREN) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.