AI cloud company Iren Limited’s (IREN) shares are up more than 40% over the past five days, with the stock exploding following its $5.5 billion AI infrastructure deal with chipmaking giant Nvidia (NVDA). A look at the company’s ownership structure shows that public businesses and individual investors will benefit the most from the rally.
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Forget margin or options. Here's how the pros trade IRENIren Secures $3.4B AI Cloud Deal with Nvidia
Iren excited investors with its deal and partnership with Nvidia, which includes a $3.4 billion cloud services agreement and a potential $2.1 billion equity stake. This comes with a plan to deploy up to 5 gigawatts of AI infrastructure aligned with Nvidia standards across Iren’s data center pipeline, including its 2-gigawatt campus in Sweetwater, Texas.
The rally is despite Iren reporting a third-quarter earnings miss on Thursday. Its revenue declined by about 2% from a year ago to $144.8 million, below the Wall Street consensus of $219.69 million. The company also swung from a profit of 11 cents per share a year ago to a loss of 30 cents per share — this is worse than analysts’ estimates of a loss of 22 cents per share.
However, Iren now has a $3.4 billion cloud services deal with Nvidia, adding the chipmaker to its roster after its $9.7 billion contract from Microsoft (MSFT) last November. Since the start of the year, Iren’s shares have now risen about 58%.
Who Owns Iren’s Shares?
A mix of institutional, retail, and individual investors will benefit from the rally. Topping the list are public companies and individual investors, who account for 79.38% of Iren shares, according to TipRanks’ Ownership tool.
This is followed by insiders at 8.64%. Leading the pack of insiders are Daniel John Roberts and William Gregory Roberts, Iren’s co-founders and co-CEOs. Next on the list are exchange-traded funds with a 6.77% stake.
Is IREN Stock a Strong Buy?
On Wall Street, IREN’s shares still carry a Moderate Buy consensus rating from analysts. This is based on seven Buys and three Holds issued over the past three months.
However, the average IREN price target of $72.56 suggests about 24% upside from current trading levels.
