IREN Shares Sink Amid Q4 Earnings, But Analysts See Bright Future Ahead

IREN Limited's shares plummeted more than 7% after its fiscal fourth-quarter results, but analysts are treating this as a buying opportunity. The company's AI cloud business is rapidly overtaking its shrinking Bitcoin-mining operation, with revenue from the former increasing 907% year over year to $70.5 million.

Analyst Gregory Miller of Citizens JMP reiterated a Buy rating and $80 price target for IREN, implying roughly 97% upside from about $38. He argues that the company's underlying AI cloud business continues to gain momentum, with $1 billion of annual recurring revenue already operating and $4 billion of contracted ARR as evidence.

H.C. Wainwright analyst Mike Colonnese was even more bullish, maintaining a Buy rating and $90 target, implying roughly 122% upside. Miller expects reported results to remain uneven while new infrastructure comes online, but points to the company's AI transition gaining traction.