Crashed from Its Peak — Wall Street Is Quietly Buying This Growth Stock

It’s not every day that a $5 stock turns into a $70 stock within a few months, but IREN (NASDAQ:IREN) achieved that feat last year. However, the volatile stock hasn’t fared as well to start 2026. It’s slightly down year-to-date and is almost 50% removed from its all-time high. 

That hasn’t stopped Wall Street from accumulating this stock. Howard Lutnick’s Cantor disclosed a $126 million investment in the company last month. That gives Cantor more than a 1% stake in the company.

Although IREN hasn’t performed well in recent months, there is plenty to be bullish about as the stock aims to reclaim all-time highs. 

IREN Enhanced Its AI Capacity

The biggest grumbling about IREN stock stems from the fact that it hasn’t yet signed a deal that’s similar to the 5-year $9.7 billion contract with Microsoft (NASDAQ:MSFT | MSFT Price Prediction). That deal includes AI capacity and energy for 200 megawatts, which demonstrates how lucrative AI data centers can be.

However, the company did have some good news in its Q2 FY26 earnings results that implies long-term revenue growth. IREN added a 1.6 gigawatt Oklahoma site to its AI datacenter portfolio, bringing its total to 4.5 gigawatts. That gives IREN enough capacity to support more than 20 deals like the Microsoft one. It can translate into substantial annual recurring revenue, and 1.4 gigawatts of that capacity is slated to be energized in April.

IREN also secured $3.6 billion in GPU financing at a 6% APR, which is pretty competitive. It means that lenders trust IREN’s business model and are willing to give the company cheap money. Access to cheap capital will help IREN scale its AI data centers and win more deals.

IREN Is A Major Part Of The AI Bottleneck

When a growth stock goes into a deep correction, it’s easy to forget about its long-term catalysts. IREN is still at the center of the AI boom due to its power capacity. Tech companies continue to buy AI chips, but those chips won’t do any good if there’s no place to plug them in. It’s even more difficult to find large sites like IREN’s 1.6 gigawatt Oklahoma site than to fragment AI chip usage across a bunch of smaller sites.

Goldman Sachs (NYSE:GS) expects AI data center demand to grow by 50% and reach 92 gigawatts by 2028. Meta Platforms (NASDAQ:META) also signed a deal with Oklo (NYSE:OKLO) for a 1.2 gigawatt nuclear energy site that won’t be fully energized until 2034. This deal and Goldman Sachs’ report show strong demand for AI energy capacity, and IREN’s gigawatts will be ready to go much sooner than Oklo’s.

IREN co-CEO Daniel Roberts has told investors that he is negotiating lucrative deals with multiple hyperscalers. While tangible results are vital for the bullish narrative, IREN can wait a bit in negotiations to command higher prices. As more money flows into AI, energy will become more valuable, especially capacity that will be ready within a few months.

The $6 Billion Equity Plan Is Smarter Than It Looks

One of the news items that shook IREN stock was the company’s $6 billion equity plan. Some investors interpreted this as immediate dilution, but it is an intelligent way to raise funding over time as needed.

The plan lets IREN sell up to $6 billion of its stock to invest back into the company. AI chips and constructing AI data centers are two expenses that can translate into high annual recurring revenue in the future. However, IREN doesn’t have to tap into its $6 billion line right now. In fact, it’s possible but unlikely that IREN avoids using this plan entirely. 

IREN can opportunistically dilute shareholders when the stock price rises to higher levels. Then, they don’t dilute shareholders as much with this $6 billion equity plan. It also offers quick cash that can go toward long-term growth opportunities that translate into higher profits later.

Roberts said that this type of financing can lead to outsized returns. While it’s no surprise that a co-CEO would tout his initiative, it’s important to consider how Roberts’ rewards are structured. Roberts is set to receive four tranches of IREN stock when it reaches $370, $650, $925, and $1,850 per share. Roberts’ vesting plan only pans out if the stock delivers substantial gains, and that level of confidence drives his actions. 

While the $6 billion equity plan created short-term worries on top of macroeconomic conditions and the lack of a new deal, great leadership is still at the center of a transformative industry.