IREN (IREN) Is Up 11.1% After Securing Major AI Cloud Contracts With NVIDIA Blackwell GPUs

• IREN Limited recently announced it has secured multi-year cloud service contracts with top AI companies for deployments featuring NVIDIA Blackwell GPUs, expanding its AI Cloud capacity and targeting more than US$500 million in annualized recurring revenue from 23,000 GPUs by early 2026.
• This rapid shift from bitcoin mining to AI infrastructure, now underpinned by substantial contract wins and major GPU investments, highlights IREN's ongoing transformation into an AI cloud powerhouse with significant growth potential in high-demand computing markets.
• We'll explore how IREN's large-scale NVIDIA Blackwell GPU contracts further strengthen its position in the evolving AI infrastructure investment narrative.

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IREN Investment Narrative Recap

To believe in IREN as a shareholder today is to focus on its rapid transformation from bitcoin mining to AI cloud infrastructure, driven by the recent signing of multi-year contracts for NVIDIA Blackwell GPU deployments. This news meaningfully strengthens the company's biggest short-term catalyst, securing recurring AI cloud revenues, though the greatest near-term risk remains whether rapid capital spending, largely funded through debt, can be matched by sustained cash generation as customer contracts scale. A key recent announcement was IREN’s $875 million convertible senior notes offering, intended to fund further GPU and data center expansion. This injection of capital closely relates to IREN’s efforts to capture high-margin AI cloud contracts, but also ties directly to the balance sheet pressures and sustainability questions investors are now weighing. Yet, while recurring AI revenues increase, investors need to consider how rising leverage and rapid tech cycles may impact the long-term profile of IREN...

Read the full narrative on IREN (it's free!)

IREN's narrative projects $1.5 billion revenue and $1.0 billion earnings by 2028. This requires 45.6% yearly revenue growth and an increase in earnings of $913.1 million from current earnings of $86.9 million.

Uncover how IREN's forecasts yield a $48.58 fair value, a 24% downside to its current price.

Exploring Other Perspectives

Seventeen members of the Simply Wall St Community provided fair value estimates for IREN, ranging from US$11 to US$72.52 per share. As opinions vary, rapid capital spending and expanding financing commitments remain key points to watch for the company’s future performance.

Explore 17 other fair value estimates on IREN - why the stock might be worth as much as 13% more than the current price!

Build Your Own IREN Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your IREN research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free IREN research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate IREN's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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