IREN (IREN) Is Up 29.9% After Nvidia GPU Purchase and AI Cloud Expansion Announcement

• Earlier this week, IREN Limited announced the appointment of Anthony Lewis as Chief Financial Officer, reported US$76.7 million in Bitcoin mining revenue for August 2025, and revealed plans to expand its AI cloud business through procurement of approximately 9,000 Nvidia Blackwell GPUs and admission to Nvidia's Preferred Partner Program.
• This shift marks a material transformation for IREN, signaling its commitment to becoming a key AI infrastructure provider while maintaining its established presence in Bitcoin mining and renewable-powered data centers.
• We'll explore how IREN's major Nvidia GPU purchase reshapes its growth outlook in the rapidly expanding AI cloud sector.

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IREN Investment Narrative Recap

Being a shareholder in IREN means believing the company can successfully transition from its historic reliance on Bitcoin mining to becoming a leading AI infrastructure provider, all while managing the capital intensity and risk profile of rapid scale-up. IREN’s recent commitment to purchase approximately 9,000 Nvidia Blackwell GPUs and join Nvidia’s Preferred Partner Program remains the key catalyst for near-term growth in the AI cloud segment, but does not remove short-term risks around high capex and reliance on short contract durations for AI compute revenue.

The announcement of Anthony Lewis as the new Chief Financial Officer stands out as particularly relevant, as his extensive capital markets expertise will be crucial in structuring the complex financing needed for IREN’s GPU expansion. This leadership change comes at a time when prudent financial management is essential to reduce potential leverage risks associated with significant infrastructure investments.

In contrast, investors should not overlook the possibility that IREN’s fast expansion could lead to a scenario where capital spending outpaces cash flow...

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 about $913 million from current earnings of $86.9 million.

Uncover how IREN's forecasts yield a $28.73 fair value, a 15% downside to its current price.

Exploring Other Perspectives

Thirteen fair value estimates from the Simply Wall St Community for IREN range from US$11 to US$40 per share, reflecting highly varied outlooks. With capital expenditures rising for GPU expansion, market participants should consider how short-term revenue contributions from AI cloud services might influence future performance, see how different analyses interpret the same risks and opportunities.

Explore 13 other fair value estimates on IREN - why the stock might be worth as much as 18% 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 3 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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