Iren Stock Jumps 9% on Nvidia’s $2B Deal with Nebius — What’s Next?

Shares in Australian AI cloud company Iren Limited IREN +9.33% ▲ climbed 9% on Wednesday afternoon following Dutch counterpart Nebius’ NBIS +15.51% ▲ $2 billion investment from Nvidia NVDA +0.23% ▲ . The rally reflects renewed confidence in AI demand for the sub-sector, even as analysts see a 93% upside in IREN stock.

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Why the Nebius Deal Is Driving Iren’s Rally

Nvidia’s investment in Nebius cuts across partnerships for AI factory design and support, building systems for autonomous or agentic AI, and deployment of the chipmaker’s computing infrastructure, including the incoming next-generation Rubin platform expected in the second half of this year.

Beyond Nebius, the deal reinforces continued confidence in the so-called neo-cloud companies supplying extra cloud computing capacity to Big Tech hyperscalers to meet their data center demands.

It is particularly important as it comes several days after Sydney-based Iren agreed to buy up to 50,000 graphics processing units (GPUs) from Nvidia. The GPUs are built on Nvidia’s next-generation Blackwell Ultra architecture and are expected to help Iren ramp up its fleet to 150,000 units.

What’s Next for Iren?

Analysts have previously contended that Iren’s shares — which have only gained about 10% year-to-date despite soaring more than 400% over the last 12 months — will see improved performance when sentiment on AI investment improves. Moreover, H.C. Wainwright’s five-star analyst Mike Colonnese has recently pointed out that Iren’s purchase agreement with Nvidia indicates management’s confidence that “customer demand is strong enough.”

However, how far the current rally can extend remains in question, as analysts continue to flag cash flow pressure from leading tech companies’ massive expenditure on their AI infrastructure buildout. Nonetheless, the consensus verdict on Iren is clear, as seen from analysts’ consensus rating.

** Is IREN Stock a Good Stock to Buy? **

Across Wall Street, analysts continue to hold a Moderate Buy consensus rating on IREN’s shares. This is based on eight Buys, two Holds, and one Sell recommendation issued over the past three months.

However, the average IREN price target of $79.78 suggests about 93% upside from current trading levels.

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