Up 300% in 2025, Should You Buy This Red-Hot AI Data Center Stock Here?

Core Viewpoint - IREN is transitioning from a Bitcoin mining company to an AI cloud infrastructure provider, significantly increasing its GPU capacity and aiming for substantial revenue growth in the AI sector [4][6][8]. Group 1: Company Developments - IREN has acquired 12,400 GPUs for approximately $674 million, including 7,100 Nvidia B300s, 4,200 Nvidia B200s, and 1,100 AMD MI350Xs, raising its total GPU capacity to around 23,000 [2][6]. - The company is diversifying its portfolio by integrating AMD's high-end GPUs with Nvidia's, enhancing its AI infrastructure capabilities [1][6]. - IREN's British Columbia campus can support over 60,000 Blackwell GPUs, with plans for further GPU purchases to meet rising demand [7]. Group 2: Financial Performance - IREN reported a 168% year-over-year revenue increase to a record $501 million for fiscal 2025, with Bitcoin mining revenue at $484.6 million, up 163% year-over-year [9][11]. - AI Cloud Service revenue surged 429% year-over-year to $16.4 million as the company scaled its capacity [9]. - The company achieved an adjusted EBITDA of $270 million, up 395% year-over-year, and net income of $87 million [9]. Group 3: Future Projections - IREN is targeting an annualized revenue run rate of over $500 million from its AI cloud services by the end of Q1 2026, doubling its previous target of $200–$250 million [8]. - Management projects over $1 billion in annualized revenue from Bitcoin mining, bringing total annualized revenue projections close to $1.5 billion [12]. - Wall Street estimates indicate a dramatic 108.99% year-over-year revenue growth to $1.07 billion in fiscal 2026, with earnings expected to surge 184.62% year-over-year [14]. Group 4: Market Position and Valuation - IREN's stock has more than tripled this year, reflecting strong market interest in its pivot to AI infrastructure [3][6]. - The forward price-to-sales ratio is 22.67, significantly above the sector median of 3.56, indicating a premium valuation due to the AI narrative [15]. - Analysts have a consensus rating of "Moderate Buy" for IREN stock, with nine out of thirteen recommending a "Strong Buy" [16].