- IREN stock jumped by 6% in the pre-market session.
- Nebius announced a $27 billion deal with Meta Platforms.
- The deal means that there is a strong demand for more AI data.
IREN stock price jumped by over 6% in the pre-market session on Monday after a notable announcement in the neocloud industry. It jumped to $45, up from $41.5, where it closed on Friday. It has jumped by nearly 30% from its lowest level this month, bringing its market capitalization to over $13.8 billion.
Nebius Signed a $27 Billion Deal With Meta Platforms
IREN share price rallied, mirroring the performance of other neocloud companies like Nebius, CoreWeave, and Bitfarms. Nebius stock soared by over 15% on Monday, while CoreWeave and Bitfarms rose by 5% and nearly 4%.
The surge was primarily because of major industry news. In a statement, Nebius said that it reached a $27 billion deal with Meta Platforms, the parent company of Instagram and Facebook.
The first part of the deal is worth $12 billion in the next five years, starting from early 2027. It will also buy more computing capacity worth $15 billion in a five-year period. These deals are on top of the $3 billion partnership that started last year.
This deal comes a week after Nebius reached a $2 billion investment deal from NVIDIA, the biggest company in the world. That deal will help it finance its business, including the new deal with Meta Platforms.
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These deals are highly bullish for Nebius and other companies in the neocloud industry, including IREN, as they are sending a signal that there is still demand for these services as top hyperscalers continue boosting their spending.
IREN has already reached a $9.7 billion deal with Microsoft, and in a recent statement, the management noted that it was seeing strong demand from companies and that it was being selective in a bid to get the best clients.
The company hopes that its large scale projects in its Prince George, MacKenzie & Canal, Childress, and Sweetwater sites will help it to attract some of the biggest hyperscalers in the United States, including popular names like Meta Platforms, Amazon, and Google. Besides, these companies are hoping to spend over $650 billion in the next 12 months.
The most recent financials suggest that its revenue dropped to $184.7 million in the second quarter of FY’26 from the previous $240.3 million. This revenue slowdown happened as the company continued to pivot away from its Bitcoin mining operations. It also moved from a $384 million to a loss of over $155 million
IREN Stock Price Prediction: Technical Analysis
The daily chart shows that the IREN share price formed a double-bottom pattern at $35.45 and a neckline at $63.85, its highest point in February. This neckline coincides with the Strong Pivot Reverse point of the Murrey Math Lines tool. A double-bottom pattern often leads to a strong bullish breakout.
The stock formed a small falling wedge pattern, a common reversal signal in technical analysis. Also, the Relative Strength Index and other oscillators like the MACD and the Percentage Price Oscillator have all pointed upwards.
Therefore, the most likely IREN stock price forecast is bullish, with the initial target being at $63.84, up by 45% above the current level. A move above that level will point to more gains, potentially to the all-time high of $76.
On the other hand, a drop below the key support level at $35.45 will invalidate the bullish outlook in the coming weeks.
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