Core Insights - IREN Limited's shares surged by 77.2% in September, driven by increased projections for AI computing demand and the company's strategic positioning in the AI cloud market [2][3]. Company Performance - IREN, transitioning from Bitcoin mining to a "neocloud" model, reported its fiscal fourth-quarter results at the end of August, achieving Nvidia's "preferred partner" status, which positively impacted its stock [3]. - The company announced a doubling of its GPU supply in September, leading to an increase in its revenue projections for the end of the year [4][9]. Revenue and Forecasts - IREN's revenue from its AI cloud data center business was $2.4 million in August, a slight increase from $2.3 million in July, but the company expects this to grow by 8 to 10 times by December [5][6]. - Following significant announcements from Oracle and Nvidia regarding AI computing investments, IREN raised its AI cloud annualized revenue run-rate guidance to $500 million by January, up from a previous forecast of $250 million [7][9]. Market Demand - The demand for AI computing is underscored by Oracle's $455 billion future performance obligations and Nvidia's $100 billion investment in OpenAI, indicating a potential supply tightness for AI chips and power [7][8]. - IREN's existing power capacity of 2.91 GW, along with an additional 750 megawatts contracted, positions the company to meet the high demand for AI computing resources [8].

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].