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Iris Energy Doubles AI Cloud Fleet, Analysts Divided on Outlook
7 Oct
Summary
- IREN secures $225M in AI cloud annualized revenue
- Company on track to reach $500M in annualized revenue by 2026
- Iris Energy expands AI cloud fleet, analysts have mixed views
On October 7th, 2025, IREN Limited (NASDAQ:IREN) announced that it has secured additional multi-year cloud services contracts with AI companies for NVIDIA Blackwell GPU deployments. This news has fueled the company's remarkable stock performance, with a 591% return over the past year, currently trading near its 52-week high.
According to the company, it remains on track to achieve over $500 million in annualized run-rate revenue from its 23,000 GPUs currently operating and on order by the end of Q1 2026. Notably, customer contracts have been secured for 11,000 of these GPUs, representing approximately $225 million in AI Cloud annualized revenue, expected to be operational by the end of 2025.
In other recent developments, Iris Energy has made significant strides in expanding its AI Cloud capabilities. The company procured 12,400 additional accelerators, including NVIDIA and AMD GPUs, effectively doubling its AI Cloud fleet to around 23,000 units. This expansion has prompted investment firms to adjust their outlooks on the company, with Compass Point, Bernstein, and Roth/MKM raising their price targets, while JPMorgan downgraded the stock due to valuation concerns.
