IREN and other neocloud shares rose in Tuesday pre-market trading. The gains followed reports that Google plans to sell its custom Tensor Processing Units (TPUs) to third-party cloud providers.
This strategy provides an alternative for companies like IREN that currently rely heavily on Nvidia GPUs. Access to a new high-performance chip supplier could alleviate sourcing constraints.
The shift is expected to enhance pricing power for cloud infrastructure firms. It also alters competitive dynamics within the AI hardware market.