Iris Energy (IREN) surges 17% on broader data center peer rally; Applied Digital, TeraWulf, Core Scientific also post gains.
Shares of AI infrastructure stocks surged in early Monday trading, led by IREN (NASDAQ:IREN), which jumped 17% to $39.28. Applied Digital (NASDAQ:APLD) rose 9% to $28.06, TeraWulf (NASDAQ:WULF) climbed 7% to $19.44, and Core Scientific (NASDAQ:CORZ) gained 7% to $22.31.
The rebound follows a brutal month. IREN shares fell 42% over the past month into Friday's close, while APLD dropped 43%, WULF declined 35%, and CORZ lost 26%. Monday's bounce reads as a technical recovery off deeply oversold levels rather than a response to new catalysts.
No confirmed news drove the move. The four former Bitcoin miners turned AI infrastructure operators entered the day trading well below their 50-day moving averages. IREN, for instance, closed Friday at $33.62 versus a 50-day average of $52.71.
Fundamentals remain mixed. IREN's Q3 FY2026 revenue came in at $144.8 million, falling short of the $219.3 million analyst estimate, with a net loss of $247.8 million. The bull case rests on a five-year, $3.4 billion AI Cloud contract with NVIDIA (NASDAQ:NVDA) and a target of 150,000 deployed GPUs by end of 2026.
Applied Digital told a different story. Q3 FY2026 revenue rose 139% year-over-year to $126.6 million, with adjusted EBITDA of $44.1 million. CEO Wes Cummins noted that hyperscaler annual capex reportedly grew from roughly $400 billion to nearly $700 billion, with anchor customer CoreWeave (NASDAQ:CRWV) driving Polaris Forge demand.
TeraWulf and Core Scientific are riding similar structural tailwinds. TeraWulf's HPC lease revenue reached $21 million in Q1 FY2026, representing over 60% of total revenue, backed by anchor tenants including Alphabet's (NASDAQ:GOOGL) Google. Core Scientific posted 45% year-over-year revenue growth to $115.2 million, with high-density colocation surging 9x year-over-year.
All four names remain unprofitable on a trailing basis and carry high beta (IREN's beta sits at 4.279, CORZ at 5.5). Retail sentiment is divided—StockTwits suggests bulls cite AI cloud demand and raised ARR targets, while bears point to share dilution and management compensation concerns. Reddit chatter on IREN skewed bearish to very bearish over the past week.
The Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) offers a lower-volatility angle on the theme, up 2% to $27.91 in early Monday trading. It holds Applied Digital at only 3.2% and excludes IREN, CORZ, and WULF, instead favoring data center REITs like Equinix (NASDAQ:EQIX), Digital Realty Trust (NYSE:DLR), and American Tower (NYSE:AMT), plus chip names including Broadcom (NASDAQ:AVGO) and Marvell Technology (NASDAQ:MRVL).
The next fundamental catalyst is earnings season, when hyperscaler capex commentary from Microsoft (NASDAQ:MSFT) and peers can reset the trajectory for this cohort. Until then, price action will likely be dictated by positioning and sentiment rather than fresh operating data. Monday's rebound appears to be a technical relief rally off oversold levels, not a confirmed change in trend.