IREN Ltd.: A High-Conviction AI Infrastructure Play Accelerating on Nvidia Partnership and AI Cloud Growth

IREN Ltd. (IREN) has emerged as a standout player in the AI infrastructure sector, leveraging its newly secured NVIDIA Preferred Partner status to accelerate GPU deployment and diversify its revenue streams. With a strategic focus on AI cloud services and Bitcoin mining, the company is positioning itself at the intersection of two high-growth markets. Recent financial results, coupled with bullish analyst commentary, underscore its potential as a compelling long-term investment.

Strategic Momentum: Nvidia Partnership and GPU Expansion

IREN’s collaboration with NVIDIA represents a pivotal step in its AI infrastructure ambitions. As a Preferred Partner, the company gains direct access to NVIDIA hardware and enterprise support, enabling it to scale its AI cloud offerings efficiently [1]. In August 2025, IREN announced the procurement of 1.2k air-cooled NVIDIA B300s and 1.2k liquid-cooled GB300s for $168 million, expanding its total GPU fleet to 10.9k NVIDIA GPUs [5]. These GPUs will be installed at IREN’s Prince George campus, where a 10MW liquid-cooled facility is under construction to support over 4.5k GB300s [1].

The financing strategy is equally noteworthy. IREN secured $96 million in non-dilutive 24-month leases for the liquid-cooled GPUs, ensuring rapid infrastructure scaling without equity dilution [5]. Meanwhile, the B300s were funded from existing cash reserves, highlighting the company’s financial flexibility. This diversified GPU portfolio—encompassing H100s, H200s, B200s, and the latest B300/GB300 models—positions IREN to handle a wide range of AI workloads, from training large language models to inference tasks [1].

Financial Turnaround and Revenue Diversification

IREN’s financial performance in 2025 has been transformative. For Q2 2025, the company reported record revenue of $187.3 million and net income of $176.9 million, driven by Bitcoin mining efficiency gains and AI cloud expansion [2]. Full-year FY25 results were even more striking: revenue surged 168% year-over-year to $501.0 million, while net income reached $86.9 million, reversing a net loss in FY24 [3].

The company’s dual revenue streams are a key strength. Bitcoin mining capacity has expanded to 50 EH/s, with gross profit margins hitting 74.8% in Q2 [5]. Simultaneously, IREN projects $200–250 million in annualized AI Cloud revenue by December 2025, supported by its 10.9k GPU fleet [3]. Analysts anticipate further growth, with $1.12 billion in 2026 revenue projections, reflecting confidence in IREN’s ability to capitalize on AI demand [1].

Bullish Analyst Commentary and Price Targets

IREN’s momentum has attracted strong analyst support. Of the 12 analysts covering the stock, 58% recommend a “Strong Buy,” 25% a “Buy,” and 17% a “Hold,” with no “Sell” ratings [5]. The average price target of $28.86 implies an 8.99% upside from its recent closing price of $26.48 [2]. Notably, Joseph Vafi of Canaccord Genuity raised his target to $37.00, while Cantor Fitzgerald set a $41.00 target, reflecting optimism about IREN’s AI and Bitcoin synergies [4].

Despite short-term concerns about AI cloud services revenue dips and data center repurposing, the long-term outlook remains robust. Analysts highlight IREN’s nearly 3GW of grid-connected power and its potential to scale to hundreds of thousands of GPUs, creating a durable competitive moat [1].

Risks and Considerations

While IREN’s trajectory is impressive, investors should remain mindful of risks. The AI infrastructure market is highly competitive, and Bitcoin price volatility could impact mining margins. Additionally, the company’s aggressive expansion requires sustained capital investment, though its non-dilutive financing model mitigates this risk.

Conclusion: A High-Conviction Play in AI Infrastructure

IREN Ltd. exemplifies the convergence of strategic partnerships, financial discipline, and market timing. Its NVIDIA Preferred Partner status, combined with a diversified GPU fleet and dual revenue streams, creates a compelling value proposition. With a 168% revenue surge in FY25, $1.12 billion 2026 projections, and a “Buy” consensus from analysts, IREN is well-positioned to benefit from the AI infrastructure boom. For investors seeking exposure to this high-growth sector, IREN offers a rare combination of execution, scalability, and financial strength.

Source:
[1] IREN Expands AI Cloud to 10.9k GPUs, with NVIDIA Preferred Partner Status and Additional Financing Secured [https://iren.gcs-web.com/news-releases/news-release-details/iren-expands-ai-cloud-109k-gpus-nvidia-preferred-partner-status]
[2] IREN Records Record Q2 Earnings, Shares Surge 14% [https://www.ainvest.com/news/iren-records-record-q2-earnings-shares-surge-14-2508/]
[3] IREN Reports Full Year FY25 Results [https://www.stocktitan.net/news/IREN/iren-reports-full-year-fy25-itqqzqescmz1.html]
[4] The Analyst Verdict: IREN In The Eyes Of 6 Experts [https://www.marketbeat.com/instant-alerts/iren-nasdaqiren-hits-new-12-month-high-heres-why-2025-09-03/]
[5] IREN Stock Forecast: Analyst Ratings, Predictions & Price ... [https://public.com/stocks/iren/forecast-price-target]