Iris Energy Limited

🇺🇸NASDAQ Global Select
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Iris Energy Limited stock analysis IREN overview
Bullish +75

A technical breakout is forming in this crypto-turned-AI play

📈 Iren's AI cloud services revenue nearly doubled from $17.3 million to $33.64 million in the fiscal third quarter.

🤝 The company announced a five-year partnership with Nvidia to deploy Blackwell GPUs across 60 megawatts of capacity in Texas.

💰 Nvidia issued Iren a right to purchase up to 30 million shares at $70 per share, allowing for potential investment of up to $2.1 billion.

🤝 Microsoft previously signed a $9.7 billion deal with Iren for access to their Nvidia GB300 chips.

🛒 To support the Microsoft agreement, Iren agreed to purchase $1.8 billion in related equipment from Dell.

📉 Analysts note that while revenue projections are strong, free cash flow remains a concern due to messy financials.

📈 Revenue is expected to grow from $764 million this year to $9.55 billion by fiscal 2029.

📊 Technical analysis identifies a classic cup and handle pattern with a breakout target around $75.

📉 The 50-day moving average for Iren is currently at $48.78 with an average daily notional value of $2.2 billion.

🚀 Inside Edge Capital has added Iren to its fast money accounts and considers adding an initial allocation to its flagship growth portfolio.

⚠️ The proposed investment strategy includes stop losses on a move back towards $60 and plans to increase position size upon breakout confirmation.

🔄 Iren is actively transitioning away from its former life as a bitcoin mining operation toward AI infrastructure.

📉 The author holds a short position in Ethereum via an inverse ETF, betting on a total transformation away from crypto mining.

⚠️ Todd Gordon, the founder of Inside Edge Capital, discloses that he owns IREN personally and for clients in his wealth management company.

⚖️ All opinions expressed are solely those of the contributor and do not reflect the opinions of CNBC or its affiliates.

📝 The content is provided for informational purposes only and does not constitute financial, investment, tax, or legal advice.

Bullish Signals
  • Iren's AI cloud services revenues nearly doubled from $17.3 million to $33.64 million in the fiscal third quarter.
  • The company secured a five-year partnership with Nvidia to deploy Blackwell GPUs across 60 megawatts of capacity in Texas.
  • Nvidia has issued Iren a right to purchase up to 30 million shares at $70 per share, representing a potential investment of up to $2.1 billion.
  • Microsoft signed a $9.7 billion deal with Iren for access to their Nvidia GB300 chips in March.
  • Iren made a separate agreement with Dell to purchase $1.8 billion in related equipment to support the Microsoft deal.
  • Revenue projections show significant growth from $764 million this year to $9.55 billion by fiscal 2029.
  • Technical analysis indicates a classic cup and handle pattern forming with a potential breakout level around $75.
  • The company is actively transforming away from its former bitcoin mining operations toward AI infrastructure.
Full Analysis
Iren (IREN) is transitioning from a cryptocurrency mining operation to an artificial intelligence infrastructure provider, with its Q3 earnings showing AI cloud services revenues nearly doubling from $17.3 million to $33.64 million. The company has secured significant partnerships, including a five-year agreement with Nvidia to deploy Blackwell GPUs across 60 megawatts of capacity in Texas, which includes an option for Nvidia to purchase up to 30 million shares at $70 per share, representing a potential investment of up to $2.1 billion. Additionally, Microsoft signed a $9.7 billion deal with Iren earlier this year to access its Nvidia GB300 chips, prompting Iren to agree to purchase $1.8 billion in equipment from Dell to support the project. Revenue projections are expected to grow from $764 million this year to $3.1 billion in fiscal 2027, reaching $9.55 billion by fiscal 2029, though these figures come with high costs and uncertain free cash flow improvements. Analysts note that while the fundamental picture remains cloudy due to financial cleanup needs, the technical outlook suggests a potential breakout around $75 based on a cup and handle pattern, with institutional interest indicated by an average daily notional value of $2.2 billion traded. The company is also exiting its crypto mining business, evidenced by a short position in Ethereum via an inverse ETF, signaling a strategic pivot away from Bitcoin and Ethereum mining toward AI infrastructure.