IREN stock price continued its strong rally, reaching a record high as traders waited for its earnings, and the artificial intelligence industry tailwinds gained steam. It jumped to a high of $76, bringing its market capitalization to over $20 billion. It has jumped by over 1,400% from its lowest level this year.
IREN stock surges ahead of earnings
IREN, a top company in the Bitcoin mining industry, is doing well after its recent pivot to the artificial intelligence industry, which is gaining momentum this year.
The company has continued to invest in its data center and is now housing thousands of Nvidia and AMD chips in its data center, a process that will continue in the coming months.
In September, the company said that it expanded its GPUs to almost 11,000, with most of them being Blackwells. This growth will likely continue now that the company has landed a large order from Microsoft, which will pay it over $14 billion in the next five years in a deal that may be expanded.
Most importantly, the company is still mining substantial numbers of Bitcoins, which has helped it to grow its revenue. While investors are focusing on the AI potential, the mining potential is still there.
Its mining revenue in the fourth quarter came in at $180 million, up sharply from the $141 million it made in the same period last year. Its AI revenue, on the other hand, was $7 million, up from the previous $3.6 million.
Analysts are optimistic that the company’s business continued doing well in the first quarter, helped by its Bitcoin and AI initiatives. The average estimate is that its revenue will be $241 million, up by 344% from what it made last year.
Analysts also expect its earnings-per-share to come in at $0.15, a big increase from the 16-cent loss it made last year.
The guidance for the second quarter is expected to come in at $257 million, while its annual revenue will be $1.17 billion, up from the $510 million it made last year
These numbers mean that it has become one of the fastest-growing companies in the US and is mirroring the performance of CoreWeave and Nebius, which pioneered this model.
Analysts hope that the company will continue doing well as more large and smaller companies embrace its infrastructure for their AI workloads. Some of the potential customers are companies like Anthropic, Perplexity, Amazon, and Oracle.
IREN share price technical analysis
IREN share price chart | Source: TradngView
The daily timeframe chart shows that the IREN stock price has gone vertical, moving from a low of $5 in April to a high of $75 today.
As a result, the stock has moved above all moving averages and the important resistance level at $74, invalidating the double-top pattern.
It also remains above the Ichimoku cloud and the Supertrend, meaning that bulls are in control for now.
The risk, however, is that its strong numbers have been priced in, meaning that it may pull back after the earnings.
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