Iris Energy Limited

NASDAQ Global Select
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Bullish +65

JPMorgan Predicts IREN Will Generate $24 Billion in Annual Revenue by 2030

AI infrastructure Analyst upgrade Customer contract AI-generated analysis

📈 JPMorgan upgraded IREN to Overweight with a $65 price target, projecting $24B annual revenue by 2030 based on a model assuming 2,065 MW capacity and 65% EBITDA margins.

🔄 IREN is pivoting from Bitcoin mining to AI cloud services, with FY26 AI Cloud revenue reaching $128.8M (8x growth) and surpassing mining revenue in the June quarter.

🤝 Major contracts include a $9.7B deal with Microsoft and a $3.4B five-year agreement with NVIDIA, supporting a target of $4B ARR by December 2026.

⚡ IREN possesses a data center pipeline of over 5GW across North America, Spain, and Australia, utilizing customer prepayments to fund roughly half of its GPU capex.

💰 FY27 capital expenditure guidance is set between $25 billion and $30 billion to support the massive expansion required for the long-term revenue forecast.

📉 The company reported a net loss of $684 million in the June quarter, which included a $450.4 million non-cash impairment on retired mining hardware.

🏗️ Management aims to deliver 0.8GW of IT capacity in 2027 and complete remaining Microsoft deployments by the December quarter.

💡 Co-CEO Daniel Roberts noted that signed contracts from top AI buyers represent less than 10% of their secured grid connection portfolio, indicating significant room for growth.

Bullish Signals
  • JPMorgan upgraded IREN to Overweight with a $65 price target, projecting $24B annual revenue by 2030 based on a model assuming 2,065 MW capacity and 65% EBITDA margins.
  • AI Cloud Services revenue reached $128.8M for FY26, an eight-fold increase year-over-year, surpassing Bitcoin mining revenue of $66.7M in the June quarter.
  • The company secured a $9.7B contract with Microsoft and a $3.4B five-year AI Cloud contract with NVIDIA, supporting a target of $4B ARR by December 2026.
  • Customer prepayments now cover 45% to 55% of GPU capex, reducing financial risk while data centers remain fully unencumbered with no debt against them.
  • IREN has a robust data center pipeline of more than 5GW across North America, Spain, and Australia, providing ample physical room for expansion.
Risk Factors
  • The company reported a net loss of $684 million in the June quarter, which included a $450.4 million non-cash impairment on retired mining hardware.
  • FY27 capital expenditure guidance is set between $25 billion and $30 billion, representing a massive financial outlay required to execute the growth strategy.
Full Analysis
JPMorgan upgraded IREN from Underweight to Overweight with a price target of $65, projecting the company will generate $24 billion in annual revenue by 2030. This forecast assumes IREN reaches approximately 2,065 MW of capacity by decade's end, operating at roughly $13M revenue per MW with EBITDA margins near 65%. The bank's model contrasts sharply with IREN's current fiscal 2026 revenue of $707 million, highlighting the magnitude of the anticipated growth trajectory. IREN is executing a strategic pivot from Bitcoin mining to becoming a vertically integrated AI cloud provider. Management expects to decommission mining operations by December 2026, with AI Cloud Services revenue already surging to $128.8 million for fiscal 2026, an eight-fold increase year-over-year. In the June quarter, AI Cloud revenue reached $70.5 million, surpassing Bitcoin mining revenue of $66.7 million for the first time. The company has secured significant demand through major contracts with Microsoft ($9.7 billion) and NVIDIA ($3.4 billion), targeting $4 billion in annualized recurring revenue (ARR) by December 2026. IREN holds a data center pipeline exceeding 5GW across North America, Spain, and Australia, with customer prepayments covering 45% to 55% of GPU capex. Despite high costs including FY27 capex guidance of $25-30 billion and a recent net loss of $684 million, the firm maintains unencumbered data centers.