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IREN Company Overview
IREN Limited (IREN) is a vertically-integrated data-center operator. IREN, which initially started as a crypto mining business, has transitioned its data centers to those that are built for high-performance computing (HPC) workloads necessary to run AI models like ChatGPT and Alphabet’s (GOOGL) Gemini. With operations mainly in North America, IREN distinguishes itself from the competition by powering its data centers with 100% renewable energy. The company offers everything needed for its hyperscale clients including AI Cloud, GPU clusters, colocation, and build-to-suit infrastructure for scalable compute.
The most straightforward and sensible way to take advantage of the AI revolution is to buy companies like IREN that sell the picks and shovels. Currently, the data center business is booming, with no end in sight. Operating data center capacity tripled to 810 MW in FY25. Additionally, IREN is uniquely positioned to benefit from the AI revolution’s biggest problem: energy. Data centers require immense amounts of energy. Instead of relying on the grid, IREN’s renewable energy solutions give the company lower costs and better margins.
Because IREN previously operated crypto data centers, the company has a significant head start over other data center operators in terms of scale, locations, and the energy moat data center providers need.
IREN shares are breaking out of a rare yet powerful high tight flag pattern. A high tight flag occurs when a stock gains 100% in 8 weeks or less then bases, giving up no more than 20%. While such patterns may seem extended to the average investor, they often signal more upside.
Meanwhile, the stock is up more than 6% in early trading today, bucking the general market trend and exhibiting bullish relative strength trends.
Zacks Consensus Analyst Estimates call for explosive triple-digit top-and-bottom line growth.
IREN will report earnings on Thursday, November 6th. The implied post-earnings move is +/- 12.2%.
Bottom Line
The combination of a booming industry, explosive growth, and a bullish chart pattern give us a bullish outlook on IREN over the next few months.
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This article originally published on Zacks Investment Research (zacks.com).
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