IREN (IREN) Is Up 12.8% After Doubling AI Cloud Infrastructure With Major GPU Investment - Has The Bull Case Changed?

• In recent days, IREN announced it has nearly doubled its AI Cloud infrastructure to around 23,000 GPUs after purchasing an additional 12,400 high-end NVIDIA and AMD units for approximately US$674 million, with a goal of exceeding US$500 million in annualized AI Cloud revenue by the first quarter of 2026.
• This expansion signifies IREN's rapid diversification beyond Bitcoin mining, as it actively shifts resources and expertise to meet surging demand for AI computing at its British Columbia and Texas campuses.
• Let's examine how IREN's sizable AI Cloud investment may reshape its investment narrative and sector leadership outlook.

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IREN Investment Narrative Recap

To be a shareholder in IREN today, you would need to believe in the company’s vision of transforming itself from a pure-play Bitcoin miner to a leading provider of AI cloud infrastructure, betting that this diversification produces sustained and profitable growth. The recent move to nearly double AI GPU capacity represents a significant catalyst, supporting management’s US$500 million annualized AI Cloud revenue target, but also amplifies the risk of capital expenditures outpacing the cash generated from these new business lines.

Of the recent announcements, IREN’s decision to bring forward procurement of 12,400 NVIDIA and AMD GPUs stands out, as it enhances the company’s ability to meet surging AI demand and underpins its ambitious revenue targets. This action is relevant for investors tracking both the opportunity for accelerated top-line growth and the necessity of careful financial management during this expansion.

Yet, investors should be mindful that, by contrast, rapid expansion often carries the risk of ...

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 earnings increase of approximately $913 million from $86.9 million today.

Uncover how IREN's forecasts yield a $29.55 fair value, a 29% downside to its current price.

Exploring Other Perspectives

Fourteen members of the Simply Wall St Community estimate IREN’s fair value as low as US$11 and as high as US$40 per share. The company's heavy capital investment and reliance on short-term AI contracts may affect long-term profitability, making it essential for you to weigh a wide range of forecasts.

Explore 14 other fair value estimates on IREN - why the stock might be worth as much as $40.00!

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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