"Few sectors this year have delivered the kind of explosive gains seen in artificial intelligence (AI)-focused data center operators. IREN ( NASDAQ:IREN ) is a former Bitcoin miner turned renewable-powered AI cloud provider and surged more than 400% year-to-date at its peak. Nebius Group ( NASDAQ:NBIS ) - the rebranded AI infrastructure arm of what was once Russian search giant Yandex - climbed over 500% from its spring lows as it secured massive GPU deals."
"IREN just signed a five-year, $9.7 billion cloud services deal with Microsoft ( NASDAQ:MSFT ) for Nvidia ( NASDAQ:NVDA ) GB300 access and reported record quarterly revenue of $240 million. Nebius landed multi-billion commitments from Meta Platforms ( NASDAQ:META ) and others while guiding to explosive annual recurring revenue (ARR) growth. Cipher secured long-term hosting pacts backed by major tech players and continues expanding capacity with low-cost power advantages."
AI-focused data center operators surged hundreds of percent in 2024 as former miners and rebranded infrastructure firms captured hyperscaler GPU demand. Major names secured multi-billion dollar contracts, reported record revenues, and guided to explosive ARR growth while expanding capacity and locking in low-cost power. Suddenly, shares plunged 25–35% and wiped out billions in market value in days. Company fundamentals remain strong with secured power pipelines, GPU orders, and projected multi-year revenue, but investor concern about capital intensity, opaque leverage structures, and near-term refinancing risk prompted rapid repricing and a sharp selloff.
Read at 24/7 Wall St.
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