A Major Neocloud Stock Rally May Be Coming. These 3 Stocks Could Be the Biggest Winners.
The impacts of tariffs and trade wars brought neocloud stocks to a low point in 2025 before potent rallies put them back in the spotlight on Wall Street. The end of this year may follow that same pattern.
A recent downturn has plagued neocloud stocks, with CoreWeave (CRWV -9.90%), Nebius (NBIS -6.67%), and Iren (IREN -11.24%) among the most impacted. Nebius emerged as the weakest performer, down 42% over the past month, while CoreWeave and Iren saw less severe declines. However, a neocloud stock rally appears imminent. Iren, which saw a 60% plunge in October, is poised to rebound.
Its stock is trading at roughly a third of its peak, but it reached nearly $77 per share last year, underscoring the potential for significant gains. Iren boasts a 5.8-gigawatt pipeline, with 500 megawatts set to come online in 2027, potentially generating $16 billion in annual recurring revenue. CoreWeave, despite its high debt, has doubled its revenue year-over-year to $2.6 billion and nearly reached a positive operating margin.
Its backlog has tripled year-over-year, signaling robust demand for AI cloud services. Nebius, while down less than Iren, remains unprofitable but has shown strong revenue growth, particularly in Q2, where it surged by 454% year-over-year. Its compute pricing is high, and it secured a $3.5 billion financing facility, indicating continued access to capital.
Between these three, Iren appears best positioned for a neocloud stock rally, given its strong pipeline and revenue potential.
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