How has Iris Energy's AI Cloud fleet expansion impacted analyst views?

Iris Energy's expansion has prompted investment firms to adjust their outlooks, with some raising their price targets while JPMorgan downgraded the stock due to valuation concerns.

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IREN Secures Massive AI Cloud Contracts, Shares Soar

Q: What is IREN's plan for achieving $500 million in annualized revenue?

IREN is 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.

Q: What is the current status of IREN's GPU deployments?

IREN has secured customer contracts for 11,000 of its 23,000 GPUs, representing approximately $225 million in AI Cloud annualized revenue, expected to be operational by the end of 2025.

7 Oct

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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

IREN Secures Massive AI Cloud Contracts, Shares Soar

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.

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