Iren Stock Explodes 15% as AI Funding Frenzy Continues

TLDR

• Iren stock jumped 14.57% on Tuesday, bouncing back after Monday’s decline following a rival CoreWeave deal with Nvidia
• The rally came as Anthropic reportedly seeks to double its fundraising target to $20 billion with a $350 billion valuation
• AI startups raised a record $150 billion in 2025, nearly matching the $172 billion raised in IPOs last year
• Analysts maintain bullish outlook with average price target of $82.80, suggesting 38% upside potential from current levels
• Iren shares have surged nearly 60% year-to-date despite missing recent earnings expectations

Iren Limited shares climbed 14.57% on Tuesday, reaching $59.99 as investors shook off Monday’s weakness. The stock traded on heavy volume of about 54 million shares, roughly 25% above its average daily activity.

IREN Limited, IREN

The bounce came after shares dipped Monday when CoreWeave announced a $2 billion deal with Nvidia. But Tuesday’s recovery appears linked to fresh optimism around AI companies, particularly as news circulated that Anthropic is looking to raise significantly more capital.

Reports suggest Anthropic aims to double its fundraising target to $20 billion. The AI company is seeking a valuation of $350 billion with this expanded fundraising effort.

The broader AI funding picture remains hot. In 2025, AI startups collectively raised $150 billion, approaching the $172 billion raised through IPOs last year. This happened even as IPO activity jumped 39% year-over-year, according to EY data.

Iren has been riding a wave of AI-related rallies in recent weeks. B. Riley analysts Nick Giles and Fedor Shabalin had predicted the stock would improve once sentiment around AI companies picked up again.

Their call has proven accurate. Earlier this month, Iren gained 13% during the CES 2026 trade show in Las Vegas, where major AI firms rolled out new products and updates.

AI Infrastructure Spending Drives Confidence

Another rally occurred after TSMC reported strong fourth-quarter results highlighting chip demand. The world’s largest contract chip manufacturer plans to boost capital spending from about $41 billion in 2025 to between $52 billion and $56 billion in 2026.

These spending increases signal continued infrastructure investment in AI capabilities. Iren operates data centers and also mines bitcoin, positioning it at the intersection of two computing-intensive industries.

The company’s shares have climbed nearly 60% since the start of 2026. This dramatic run comes despite a recent earnings miss that saw the company report a loss of $0.34 per share versus analyst expectations of $0.14 profit.

Analyst Outlook Remains Positive

The average price target sits at $82.80, implying about 38% upside from current levels. Individual analyst targets range from $39 to $94.

Bernstein recently maintained Iren as its top AI pick for the year. H.C. Wainwright analyst Mike Colonnese argues the company “is set for a transformative year.”

Colonnese points to potential revenue from Iren’s recently signed $9.7 billion deal with Microsoft. The company has yet to realize meaningful revenue from this partnership.

Iren’s most recent quarter showed revenue of $240.30 million, up 28.3% year-over-year but slightly below analyst estimates of $244.60 million. The company maintains strong liquidity with a current ratio of 5.52 and a debt-to-equity ratio of 0.34.

The stock’s beta of 4.25 indicates high volatility relative to the broader market. Institutional investors own about 41% of the company’s shares.

Roth Mkm set a price target of $94 on the stock, while Goldman Sachs initiated coverage with a neutral rating and $39 target in December. Macquarie raised its target to $86 in October.

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