IREN Ltd. shares closed at $57.82 on Friday, marking an 11.43 percent increase and ending two days of losses. The move came as investors reacted to news from Taiwan Semiconductor Manufacturing Company.
TSMC announced on Friday that it is setting aside a budget for this year ranging from $52 billion to $56 billion. This represents a 33 to 37 percent increase compared to last year's $38 billion to $42 billion budget. The company cited strong demand for semiconductors.
Optimism extended to IREN Ltd. and SuperMicro Computer Inc., both companies heavily reliant on Nvidia Corp.'s GPUs, which are manufactured by TSMC.
TSMC also reported strong financial results for the past quarter. Net income expanded by 35 percent to NT$505.7 billion from NT$374.68 billion in the same period last year. Net sales jumped by 20.5 percent to NT$1.046 trillion from NT$868.46 billion year-on-year.
Separately, investment firms HC Wainwright and Bernstein recently issued "buy" recommendations for IREN Ltd. HC Wainwright set an $80 price target for the stock, indicating a 38 percent upside potential from its latest closing price. Bernstein cut its price target to $75 from $125, but the new figure still represented a 30 percent upside potential.