IREN Surges 14% on Q4 Profit and AI Expansion—What’s Fueling the Momentum?

Summary
• IREN’s stock rockets 14.26% intraday, hitting a 52-week high of $29.50
• Q4 net income jumps to $176.9M, marking first full-year profit
• AI cloud unit on track for $250M annualized revenue by December
• Options frenzy: 20 contracts traded, with IREN20250905C26 seeing $541,785 turnover
IREN’s meteoric rise reflects a seismic shift in its business model, driven by AI cloud expansion and Bitcoin mining gains. With a 134.62% YTD surge and a 52-week high breached, the stock’s volatility and technical indicators signal a pivotal moment for investors.

Q4 Profit and AI Expansion Drive IREN's 14% Surge
IREN’s 14.26% intraday jump stems from a confluence of factors: a $176.9M net income in Q4 (its first full-year profit), a $501M revenue surge, and aggressive AI cloud expansion. The company’s AI unit, now deploying 10,900 Nvidia GPUs, is projected to hit $250M in annualized revenue by December. CEO Daniel Roberts emphasized vertical integration across AI infrastructure, while Bitcoin mining operations generated over $1B in annualized revenue. Analysts upgraded IREN to 'Moderate Buy' with a $20.93 price target, though the stock’s 134.62% YTD gain suggests optimism outweighs caution.

Sector Performance Diverges as IREN Outpaces Peers
While IREN soars, its sector leader Equinix (EQIX) declines 0.07% intraday. The Data Processing & Outsourced Services sector remains fragmented, with IREN’s AI and Bitcoin-driven growth diverging from peers’ more traditional data-center models. IREN’s 52-week high of $29.50 now edges closer to rival MARA Holdings’ $6B market cap, signaling a potential sector realignment.

Options Playbook: Leverage IREN’s Bullish Momentum
• MACD: 1.66 (above signal line 1.34), RSI: 69.37 (overbought), Bollinger Bands: $23.94 (upper), $19.38 (middle), $14.83 (lower)
• 200D MA: $11.41 (far below current price), 30D MA: $18.73 (support)
IREN’s technicals scream short-term bullish momentum, with RSI near overbought and MACD divergence hinting at a potential pullback. Key levels to watch: $25.62 (intraday low) as support and $29.50 (52W high) as resistance. Two options stand out for aggressive bulls:
• IREN20250905C26: Call option with 26.69% leverage, 0.547 delta, 85.53% IV, and $541,785 turnover. Gamma (0.1196) and theta (-0.1501) suggest strong price sensitivity and time decay. A 5% upside to $27.64 would yield a $1.64 payoff.
• IREN20250905C27: Call option with 26.69% leverage, 0.4296 delta, 86% IV, and $685,083 turnover. Gamma (0.1179) and theta (-0.1359) indicate robust responsiveness. A 5% move to $27.64 would net $0.64 per contract.
Aggressive bulls may consider IREN20250905C26 into a bounce above $26.50.

Backtest IREN Stock Performance

IREN’s AI-Driven Momentum: Position for Next-Stage Growth
IREN’s 14% surge reflects a structural shift toward AI and Bitcoin mining, with technicals and fundamentals aligning for further gains. While RSI near overbought and a 52W high breach suggest caution, the stock’s 134.62% YTD rally and AI expansion plans justify a bullish stance. Watch for a breakdown below $25.62 or a breakout above $29.50. Sector leader EQIX’s -0.07% intraday dip underscores IREN’s divergence—position now for the next leg up.