Can IREN Limited's Growing AI Cloud Business Push the Stock Higher?

Core Insights - IREN Limited is rapidly expanding its AI cloud business, doubling its GPU capacity to 23,000 through a $674 million investment in additional GPUs [1][8] - The company anticipates achieving an annualized run-rate revenue of $500 million in AI Cloud by Q1 of fiscal 2026, with current contracts for 11,000 GPUs supporting $225 million in ARR [2][8] - IREN raised $979 million through a convertible note offering, indicating strong investor interest, and is projected to reach $1.25 billion in annualized revenues by December 2025, with significant contributions from both bitcoin mining and AI Cloud [3] Company Performance - IREN shares have surged 502.7% year-to-date, significantly outperforming the broader Zacks Finance sector and the Zacks Financial Miscellaneous Services industry [6][8] - The stock is currently trading at a price/cash flow multiple of 63.42X, which is considerably higher than the industry average of 19.22X [12] Competitive Landscape - IREN faces strong competition from Applied Digital and TeraWulf in the AI infrastructure sector, with Applied Digital benefiting from high demand for data center infrastructure and energy efficiency [4] - TeraWulf is expected to grow its revenue through its joint venture with Fluidstack, focusing on high-performance computing, with preliminary Q3 2025 revenues projected to show 84% year-over-year growth [5]