Iren Limited's AI Infrastructure Pivot: Is the Stock Still a Buy?

Iren Limited reported record FY25 revenue of $501 million, up 168% YoY, and secured Nvidia Preferred Partner status. The company plans to deploy 10,900 Nvidia GPUs by Dec 2025, projecting $200-$250 million in annual AI cloud revenue. Despite a massive rally, Iren trades at 31 times forward earnings, which is reasonable for triple-digit growth rates.

Iren Limited (NASDAQ: IREN) reported a record full-year fiscal year 2025 (FY25) revenue of $501 million, representing a 168% year-over-year (YoY) increase. The company also secured Nvidia Preferred Partner status and plans to deploy 10,900 Nvidia GPUs by December 2025, projecting $200-$250 million in annual AI cloud revenue by the end of the year. Despite a significant rally, Iren trades at 31 times forward earnings, which is considered reasonable given its triple-digit growth rates.

The company's FY25 earnings were driven by a net income of $86.9 million, up from a net loss of $28.9 million in the previous year. Total revenues expanded by 167.6% to $501 million, with Bitcoin mining contributing the largest chunk at $484.6 million, a 163% increase from the previous year. Revenues from AI cloud services surged by 429% to $16.4 million from $3.1 million in the same period.

Iren's expansion into the AI infrastructure space is notable. The company secured Nvidia Preferred Partner status and purchased 1,200 air-cooled B300 chips and 1,200 GB300s for approximately $168 million, effectively expanding its GPU fleet to 10,900 Nvidia GPUs. The financing strategy includes a 24-month lease for the GB300s, with $96 million in non-dilutive financing secured at a high single-digit interest rate. The B300 GPUs are funded from existing cash reserves.

The expansion will bring Iren's total GPU fleet to 10,900 Nvidia GPUs, including a mix of H100s, H200s, B200s, B300s, and GB300s. This diversification is strategically sound, as it allows the company to accommodate varying workload requirements while remaining at the forefront of performance capabilities. The GB300 systems, in particular, represent Nvidia's latest architecture, which delivers substantial performance improvements for AI training and inference workloads.

The company's growth strategy includes the construction of a 10MW liquid-cooled facility at its Prince George campus, capable of supporting over 4.5k GB300s. This hybrid cooling approach offers significant thermal efficiency advantages and indicates Iren's positioning for both immediate deployment and future expansion.

Iren's power infrastructure is also noteworthy. With a 3GW grid-connected power capacity, the company has secured the necessary infrastructure to support massive future expansion, potentially to "hundreds of thousands of GPUs."

While Iren's growth prospects are promising, the stock's valuation may be influenced by market sentiment and future earnings expectations. The company's forward P/E ratio of 31 is considered reasonable given its triple-digit growth rates.

References:
1. [https://finance.yahoo.com/news/iren-ltd-iren-soars-28-175509738.html](https://finance.yahoo.com/news/iren-ltd-iren-soars-28-175509738.html)
2. [https://www.stocktitan.net/news/IREN/iren-expands-ai-cloud-to-10-9k-gp-us-with-nvidia-preferred-partner-mk7te8d50r20.html](https://www.stocktitan.net/news/IREN/iren-expands-ai-cloud-to-10-9k-gp-us-with-nvidia-preferred-partner-mk7te8d50r20.html)
3. [https://www.globenewswire.com/news-release/2025/08/28/3141101/0/en/IREN-Reports-Full-Year-FY25-Results.html](https://www.globenewswire.com/news-release/2025/08/28/3141101/0/en/IREN-Reports-Full-Year-FY25-Results.html)