IREN Ltd's stock surged 12.21% during Monday's intraday session, marking a significant rebound for the cloud computing and AI infrastructure provider.

The sharp rise follows a steep cumulative decline of approximately 20% over the previous three trading days. That selloff was triggered by market concerns after reports indicated Meta Platforms is planning to enter the cloud computing infrastructure market, potentially selling surplus AI computing power and model access to external customers. This news sparked fears of increased competition for established GPU leasing operators like IREN.

The prior decline left the stock in deeply oversold territory, setting the stage for a technical rebound. The recovery was bolstered by a collective rally across the broader AI computing sector during the session, which lifted overall sentiment. Furthermore, analyst commentary provided support, with Nomura publishing a report arguing the AI hardware investment cycle is far from peaking, and firms like Jefferies and B. Riley maintaining Buy ratings on the stock.