CoreWeave (CRWV) and Iren Limited’s (IREN) shares climbed on Wednesday as the competing AI cloud companies prepare to release their latest earnings after-market close tomorrow, May 7.
Claim 55% Off TipRanks
New trading tool for CRWV bullsBoth shares carry a Moderate Buy consensus rating from all analysts tracked on TipRanks, but CoreWeave is seen as having about 5% downside risk. By contrast, Iren could surge about 28% in the months ahead.
What Wall Street Expects from CoreWeave and Iren
Analysts on Wall Street see both companies recording massive revenue growth but with profitability remaining a thorn in their flesh.
Specifically, they expect CoreWeave’s revenue to hit $1.97 billion in Q1 2026, up by more than 100% from a year ago. However, they also anticipate a narrow loss per share for the New Jersey-based company: $0.91 compared to $0.60 from the year-ago quarter.
Similarly, analysts forecast that Iren’s revenue will jump by 48% year-over-year to reach $219.69 million. However, they are predicting that the Sydney-based company — which reported worse-than-expected losses last quarter — will swing from a profit of $0.11 seen a year ago to a loss of 22 cents per share.
The Bullish Case on CoreWeave Stock
For CoreWeave, the earnings report comes as the company’s shares have jumped over 90% since the start of the year. The company has several catalysts in its favor:
- It has secured $3.1 billion in its first syndicated loan, a facility backed by its graphics processing unit (GPU). CoreWeave plans to use the financing to build out its GPU capacity for customers such as OpenAI.
- CoreWeave secured three deals last month: an expanded $21 billion deal with tech giant Meta (META), a multi-year partnership with top AI firm Anthropic, and a $7 billion deal with proprietary trading firm Jane Street.
- Top analysts are backing the company heading into its earnings, with market observers watching out for a demand boost through remaining performance obligation.
The Bullish Case on Iren Stock
Similarly, Iren is also up about 59% year-to-date. The company has also continued to double down on its capacity.
- It has expanded its GPU fleet to 150 through a purchase agreement with Nvidia (NVDA) and plans to spend $3.5 billion on its infrastructure by the second half of this year. This week, Iren also announced the energization of its 1.4-gigawatt Sweetwater 1 data center site in Texas.
- Iren has secured $3.6 billion to fulfill its $9.7 billion contract with Microsoft (MSFT), a financing package that has been praised by some analysts as prudent due to the terms.
- On Tuesday, Iren announced its $625 million acquisition plan for Mirantis, a private cloud infrastructure company, in efforts to boost its customer base.
However, not all analysts are bullish on Iren, with Freedom Capital worried about how long it will take the cloud company to effectively transition from bitcoiner to AI cloud company.
Which Neocloud Stock Is the Better Buy?
TipRanks’ Stock Comparison tool shows that the top analysts covering Iren stock consider it a Strong Buy, with about 36% upside based on an average price target of $82.25. By contrast, CoreWeave has a Moderate Buy consensus rating from the same tier of analysts and roughly 3% downside potential based on an average price target of $133.21.
