Can IREN Limited's Growing AI Cloud Business Push the Stock Higher?

IREN Limited’s IREN AI cloud business is expanding rapidly. IREN has doubled its AI cloud capacity to 23k GPUs through the purchase of an additional 12.4k GPUs for roughly $674 million. This comprises 1.9k NVIDIA H100s and H200s, 19.1k NVIDIA B200s and B300s, 1.2k NVIDIA GB300s and 1.1k AMD MI350Xs. In late August, IREN announced that it is purchasing an additional 4.2k Blackwell B200 GPUs from NVIDIA to be installed at IREN’s Prince George campus.

IREN now expects to achieve $500 million in AI Cloud annualized run-rate revenue (ARR) by the first quarter of fiscal 2026. Currently, IREN has secured customer contracts for 11k of the 23k GPUs, representing approximately $225 million in AI Cloud ARR. 

IREN recently raised $979 million through a convertible note offering. The oversubscribed offering reflected strong investor appetite for IREN stock. IREN Limited is one of the world’s largest and lowest-cost bitcoin miners and is on track to achieve $1.25 billion in annualized revenues, with roughly $1 billion coming from bitcoin mining, and $200-$250 million from AI Cloud (by December 2025).

IREN Faces Tough Competition

IREN Limited faces stiff competition from Applied Digital APLD and TeraWulf WULF in the AI infrastructure space.

Applied Digital is benefiting from robust demand for data center infrastructure and the growing focus on energy efficiency. Strong spending by hyperscalers, which is expected to be $500 billion in 2027, bodes well for APLD. Applied Digital’s Data Center Hosting business provides energized infrastructure services to crypto mining customers.

TeraWulf’s prospects are expected to benefit from its growing footprint in the high-performance computing (HPC) domain, thanks to its latest joint venture with Fluidstack, a premier AI cloud platform that builds and operates HPC clusters. WULF’s growing HPC footprint is expected to drive top-line growth. As per the company’s preliminary third-quarter 2025 results, revenues are expected to be between $48 million and $52 million, representing roughly 84% year-over-year growth.

IREN’s Share Price Performance, Valuation & Estimates

IREN shares have appreciated 502.7% year to date, outperforming the broader Zacks Finance sector’s return of 12.7% and the Zacks Financial Miscellaneous Services industry’s appreciation of 0.7%.

IREN Stock’s Performance

The IREN stock is trading at a premium, with a price/cash flow of 63.42X compared with the industry’s 19.22X. IREN Limited has a Value Score of F.

IREN Valuation

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at 70 cents per share, unchanged over the past 30 days. The company reported earnings of 4 cents per share in fiscal 2025.

IREN Limited Price and Consensus

IREN Limited price-consensus-chart | IREN Limited Quote

IREN Limited currently carries a Zacks Rank #5 (Strong Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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