Iren Limited Surges 13% Amid OpenAI-AMD Deal

Iren Limited's stock surged 13.06% to $57.05, driven by the OpenAI-AMD deal. The agreement involves a significant purchase of AMD's Instinct series GPUs, boosting AMD's market presence in the AI sector. Iren's strategic expansion in GPU inventory positions it to benefit from increased demand for AI computing resources, but the stock is overvalued with a P/E ratio of 92.76 and P/B ratio of 8.1. Investors should weigh the company's growth prospects and financial indicators, including a low Piotroski F-Score and high Beneish M-Score, suggesting possible financial manipulation.

Iris Energy Limited (NASDAQ: IREN) saw its stock surge 13.06% to $57.05 on September 12, 2025, driven by a significant deal with AMD. The agreement involves a substantial purchase of AMD's Instinct series GPUs, which is expected to boost AMD's market presence in the AI sector. This strategic expansion in GPU inventory positions Iris Energy to benefit from increased demand for AI computing resources.

The deal is part of Iris Energy's broader strategic pivot beyond Bitcoin mining. The company has been aggressively investing in AI cloud services, which has been a key catalyst for its stock's rally. In late September, Iris Energy doubled its GPU fleet to ~23,000 units by purchasing an additional 12,400 high-end accelerators . The $674M hardware investment aims to power $500 million in annualized AI-cloud revenue by early 2026 .

However, despite the positive developments, the stock is currently overvalued with a P/E ratio of 92.76 and P/B ratio of 8.1. Additionally, the company's financial indicators suggest potential concerns. A low Piotroski F-Score and high Beneish M-Score indicate possible financial manipulation .

Investors should weigh these factors carefully. While Iris Energy's strategic expansion in AI cloud services is promising, the company's aggressive growth may come with significant risks. High capital expenditures, project execution risk, and competition in the cloud arena are potential challenges that investors should consider.