IREN's High-Stakes Pivot to AI Cloud Infrastructure Sparks Volatility

IREN's share price volatility has increased as it transitions from Bitcoin mining to AI cloud infrastructure, a move investors see as a high-stakes pivot that hinges on successful execution.

The company's stock traded between $14.72 and $76.87 in the latest session, closing at $36.29, down on the day. Volume topped 34 million shares, indicating intense interest despite unsettled sentiment.

A sharp divide exists between valuation models and sell-side optimism, with GuruFocus putting IREN's intrinsic value at $13.21, implying a 166% overvaluation. Analysts, however, have clustered around an average price target in the low $80s, suggesting AI-related revenue could re-rate the company.

IREN has secured $2.8 billion in multi-year AI cloud contracts with prominent players like Microsoft and Nvidia, lifting its target for AI cloud annual revenue to over $4.0 billion by 2026. Analyst Zacks projects a 47.5% revenue growth in fiscal 2026 and a further jump of 306.7% in 2027 as capacity comes online.

However, near-term estimates have been revised lower due to uncertainty around delivery pace and early-stage margin dynamics. IREN's expansion plan is steep, with plans to increase AI cloud capacity from 3 megawatts (MW) in 2025 to 480MW by the end of 2026 and roughly 1.2 gigawatts (GW) by 2027.