Shares in neocloud companies CoreWeave (CRWV), Nebius (NBIS), and IREN Limited (IREN) rallied on Monday afternoon. CoreWeave led the rally, jumping by more than 15%. The rally appears tied to positive sentiment about the AI cloud industry.
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200% short exposure to AMZN with AMZOOn Monday morning, e-commerce company and cloud giant Amazon (AMZN) reached a market capitalization of $3 trillion for the first time. This came as analysts continued to hail the company’s Q2 2026 earnings
More importantly, analysts pointed to the massive growth in Amazon’s AI cloud business, Amazon Web Services (AWS). AWS expanded by 37% year-over-year to $42.2 billion during the quarter ended June 20. This marked the fastest growth rate in more than four years.
Is Demand for Cloud Capacity Still High?
The rally on Monday comes days after Evercore’s five-star analyst Amit Daryanani forecast that CoreWeave, SpaceX’s (SPCX) SpaceXAI (formerly xAI), and IREN will make up the bulk of Dell’s projected $60 billion in fiscal 2027 AI server revenue.
Specifically, Daryanani expects demand from the three companies to account for about $42 billion of the revenue. In other words, orders from these companies are expected to bring in about 70% of Dell’s projected AI server revenue. This suggests that the three companies themselves will continue to need new capacity to meet expanding customer needs.
What’s more, IREN recently raised its annualized run-rate revenue (ARR) target for 2026 from $3.7 billion to over $4 billion. Of note, IREN said about 85% of its new ARR target is already under contract. The company also revealed that it has signed new multi-year cloud service deals with several new AI companies, including Perplexity.
In another interesting note, Bernstein analyst Gautam Chhugani last week pointed out an interesting shift in the industry. Chhugani noted that chipmakers are increasingly stepping in to support neocloud leasing deals.
Which Neocloud Stock Is the Best Buy?
All three neocloud stocks highlighted in this article currently carry a Moderate Buy consensus rating from Wall Street, according to TipRanks’ Stock Comparison tool.
However, IREN (IREN) leads the pack with about 89% upside. This is based on an average price target of $75.18.
