IREN Limited (IREN) Moves 6.8% Higher: Will This Strength Last?

IREN Limited (IREN) shares ended the last trading session 6.8% higher at $61.68. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 120.5% gain over the past four weeks.

IREN stock extended its rally for the third straight day, which might be the result of strength in its vertically integrated model, which gives it full ownership of its data centers, computing hardware (ASICs and GPUs), electrical infrastructure and freehold land. This enables long-term operational control, cost efficiency and flexibility compared with competitors reliant on third-party hosting. The company leverages grid-connected, 100% renewable energy sources, which enhances sustainability and community support.

Recently, IREN announced new multi-year cloud service contracts with leading AI firms for NVIDIA Blackwell GPU deployments, aiming to expand its AI Cloud capacity. With 23k GPUs in operation or on order, IREN targets over $500 million annualized run-rate revenue (ARR) by Q1 2026. Contracts for 11k GPUs are secured, worth around $225 million ARR by 2025-end. Positioned with nearly 3GW of power and scalable data centers, IREN’s aim is to accelerate its transition to GPU-driven AI infrastructure and meet surging AI compute demand.

This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +177.3%. Revenues are expected to be $236.71 million, up 335.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For IREN Limited, the consensus EPS estimate for the quarter has been revised 18% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on IREN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

IREN Limited is part of the Zacks Financial - Miscellaneous Services industry. SoFi Technologies, Inc. (SOFI), another stock in the same industry, closed the last trading session 6.8% higher at $28.14. SOFI has returned 1.5% in the past month.

SoFi Technologies' consensus EPS estimate for the upcoming report has changed +1.7% over the past month to $0.08. Compared to the company's year-ago EPS, this represents a change of +60%. SoFi Technologies currently boasts a Zacks Rank of #2 (Buy).

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This article originally published on Zacks Investment Research (zacks.com).

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