Shares in Australian AI cloud company Iren Limited (IREN) climbed by more than 10% on Wednesday afternoon, reversing losses from over the past few days. While there is no exact news trigger for the rally, industry developments provide pointers.
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Two ETFs to trade BE long or short: BEX & BEZNebius’ Bloom Energy Deal Spotlights Strong Demand
The jump in Iren stock comes on the same day a new filing with the U.S. Securities and Exchange Commission showed that Amsterdam-based rival Nebius (NBIS) has entered a $2.6 billion deal with U.S. on-site power generation company Bloom Energy (BE) to expand its power capacity.
Bloom Energy develops, sells, and installs solid-oxide fuel cell systems for power generation, with a focus on AI data centers. Under the agreement with Nebius, the company will deploy its technology in three phases to provide Nebius with about 250 megawatts of guaranteed power and almost 328 megawatts of total installed capacity.
The deal could be the latest reassurance for investors focused on neocloud companies that demand remains strong. This is particularly important as the sector is set for more competition, with tech giant Alphabet’s (GOOGL) Google this week teaming up with Blackstone, the world’s largest asset manager (BX), to create a new AI cloud company.
Iren Eyes Brand Boost amid ‘Growing Customer Base’
Moreover, Iren recently secured a combined $5.6 billion cloud services and potential equity stake deal from a chipmaking giant and is expanding its footprint to Europe through the acquisition of Spain-based data center developer Ingenostrum (Nostroum Group).
This week, Iren also put the spotlight on its growth by disclosing its acquisition of Awaken, a creative and media agency. Iren said its brand profile needs to “keep pace with its growing platform and customer base.”
Is IREN Stock a Strong Buy?
On Wall Street, analysts continue to call Iren’s shares a Moderate Buy based on their consensus rating. This breaks down into seven Buys, three Holds, and one Sell rating issued over the past three months.
However, the average IREN price target of $69.90 indicates about 33% upside from current trading levels.
