Neocloud stocks IREN and Nebius rallied on Oct 27 after Anthropic publicly filed for an IPO. Both reversed earlier weakness, which followed Elon Musk's warning that more than 200 neocloud companies could face failures.
IREN stock surged nearly 8.0% in morning trading, trading at $27.46 against a day's low of $25.555. The rally followed Anthropic's IPO filing, which sets the stage for the company to begin trading as soon as November 16.
Musk's warning fades as AI shares rally
Over the weekend, Musk flagged that debt markets were shutting off for AI data-center builders. Neocloud shares fell sharply on his comments, then turned positive during the session.
IREN co-CEO Daniel Roberts said demand for AI infrastructure remains strong despite increased investor scrutiny. The broader market also helped: the S&P 500 added 0.1% to 7,687.68, with nine of 11 sectors trading higher.
Nebius gains on French data center financing
Nebius rose nearly 9.6% after a French media report said the company had raised approximately €250 million for its planned data center near Lille. The project is part of a broader €8 billion commitment, according to the same report.
The news mattered because CEO Arkady Volozh had acknowledged days earlier that some financing channels had temporarily tightened. A company director also bought roughly $122,700 in shares, and Bank of America's Tal Liani has maintained a Buy rating on the stock.
Analysts set $99 to $100 targets on IREN
Bernstein's Gautam Chhugani holds a $100 price target, while Northland's Nehal Chokshi and Cantor Fitzgerald's Brett Knoblauch each sit at $99.
Technical conditions were deeply oversold near IREN's 52-week low of $23.72. IREN reports quarterly earnings on November 5.
Sources: Investing.com (IREN), Investing.com (Nebius)
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