IREN stock jumped 9.86% on Wednesday as investors drew confidence from blockbuster quarterly earnings posted by AI infrastructure competitors CoreWeave and Nebius Group.
CoreWeave reported a $104 billion backlog and 112% year-over-year revenue growth, while Nebius posted Q2 revenue of $582.3 million, more than five times its year-ago figure.
The moves suggest that the massive infrastructure investment driving the AI boom is beginning to translate into real revenue growth—a concern that has weighed on AI data center stocks in 2026.
What happened
IREN shares jumped 9.86% on Wednesday, following strong quarterly results from competitors CoreWeave and Nebius Group. CoreWeave reported 112% year-over-year revenue growth and a backlog of $104 billion. Nebius posted Q2 revenue of $582.3 million, up from $105.1 million a year earlier, and narrowed its adjusted net loss to $33.2 million from $91.5 million.
Why it matters
Investors have grown skeptical about whether AI infrastructure investment will deliver the promised returns, causing AI data center stocks to cool in 2026 after strong 2024–2025 performances. CoreWeave and Nebius's results suggest the opportunity is materializing as hoped, encouraging confidence that IREN—a rival AI cloud computing service provider—is riding the same wave.
What to watch
IREN remains down 36% from its late-May peak and is priced at nearly half of analysts' consensus price target of $84.64, suggesting potential room for further gains—though volatility is likely to persist.
AI data center stocks have faced investor skepticism in 2026 despite strong performances in 2024 and 2025. The concern stems from uncertainty about whether the massive infrastructure spending fueling the sector will actually produce the revenue and returns that justify the investment. CoreWeave and Nebius Group appear to have addressed that doubt head-on with their latest quarterly results. CoreWeave's backlog of $104 billion and 112% year-over-year revenue growth suggest a pipeline of future business that validates the industry's expansion narrative. Nebius's even more dramatic top-line growth—from $105.1 million to $582.3 million year-over-year—combined with improved profitability metrics, further signals that demand for AI computing infrastructure remains robust. Given that IREN operates in the same market and competes directly with these companies, investors reasonably assume it benefits from the same structural tailwinds. However, IREN's stock remains well below recent highs and trades at only half the analyst consensus price target, which suggests the market has room to reprice the stock if the company can demonstrate comparable growth.
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