- IREN share price has rebounded in the past few weeks.
- The company is facing major headwinds as CoreWeave and IREN gain market share.
- Technical analysis suggests the IREN share price will continue rising in the near term.
IREN stock price has held steady in the past few days, moving from a low of $30 on March 26 to the current $50. The stock will be in the spotlight this week as the company publishes its financial results.
IREN Facing Challenges as CoreWeave and Nebius Take the Lead
IREN share price has done well in the past few weeks as the AI spending boom has accelerated. Just last week, the top four companies in the US pledged to invest over $750 billion in capital expenditure this year.
IREN has become one of the fastest-growing companies in the industry as it scales its data centers. Its goal is to have over 150k GPUs, which it will use to provide services to companies in the AI industry.
The challenge, however, is that CoreWeave and Nebius have formed a near-duopoly in the AI industry, attracting deals from companies such as Microsoft, Anthropic, and OpenAI. NVIDIA has invested $2 billion in each of them this year.
While IREN received a $9.7 billion deal with Microsoft last year, making it one of its top AI infrastructure providers, it has not announced a major partner this year.
In contrast, CoreWeave and Nebius have announced large deals by companies like Microsoft, Anthropic, and OpenAI, a sign that these clients believe in their scale for now. This, together with its dilution, explains why the company has a short interest of 18%.
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The next main catalyst for IREN stock will be its upcoming report on May 7, which is expected to show that its business continued to grow last quarter. The average estimate is that its revenue will come in at $219 million, up by 48% YoY. Its annual revenue is expected to surge by 87% to $958 million, followed by $2.87 billion.
Still, on the positive side, the company will likely attract smaller deals in the coming years, which will help it continue growing its business and justify its AI investments.
IREN Stock Price Technical Analysis
The three-day chart shows that the IREN share price has rebounded over the past few weeks, rising from a low of $30 on March 26.
It has formed a double-bottom pattern, with the neckline at $63.40. Also, it has moved to the 38.2% Fibonacci Retracement level.
The stock has moved above the 50-day and 100-day Exponential Moving Averages (EMA). It has also formed a bullish pennant pattern.
Therefore, the most likely scenario is that the IREN share price continues to rise, potentially to the next key resistance at $63.40, which is nearly 30% above its current level.
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