IREN Limited has seen its shares rise 21.6% over the past six months, significantly outperforming the Zacks Finance sector and the Financial – Miscellaneous Services industry’s declines of 0.1% and 28%, respectively. The company’s shift from a pure-play crypto-mining entity to an AI Cloud Service Provider positions it advantageously in a market projected to experience a compound annual growth rate (CAGR) of 23.8%, according to MarketsAndMarkets.
In the second quarter of fiscal 2026, IREN’s AI Cloud Business revenue surged 136.9% sequentially to $17.3 million, up from $7.3 million in the previous quarter. The company has contracted for approximately $2.3 billion in annualized run-rate revenues (ARR), with expectations to hit $3.7 billion by the end of fiscal 2026, supported by a recent purchase of over 50,000 NVIDIA B300 GPUs, expanding its total GPU fleet to 150,000. IREN has raised about $9.3 billion over the past eight months to fund this expansion, including $3.6 billion in GPU financing and $1.9 billion from Microsoft in customer prepayments.
Currently, IREN holds over 4.5 gigawatts (GW) of secured power, with only around 10% required to meet its ARR target, leaving ample capacity for future growth. Despite strong momentum, IREN faces competition from established players like Applied Digital and TeraWulf in the AI infrastructure market, and its shares are currently trading at a forward price/sales ratio of 5.5, above the industry average of 2.67.
