Iris Energy Ltd (NASDAQ: IREN) has garnered significant attention in recent months due to its strategic pivot from traditional cryptocurrency mining to artificial intelligence (AI) cloud services. This shift has not only diversified the company’s revenue streams but has also positively impacted its stock performance.
Company Overview
Founded in 2018, Iris Energy Ltd is an Australian-based company that initially focused on sustainable Bitcoin mining operations. The company has since expanded its operations to include AI cloud services, leveraging its existing infrastructure to meet the growing demand for AI computing power.
Strategic Shift to AI Cloud Services
In September 2025, Iris Energy announced a significant expansion of its AI cloud capacity, doubling its fleet to 23,000 GPUs. This move is expected to generate an annualized revenue run-rate exceeding $500 million by the first quarter of 2026. The company’s AI cloud services now include a range of GPUs, such as NVIDIA B300s, B200s, and AMD MI350Xs, deployed across its data centers.
Financial Performance
Iris Energy’s financial performance has shown marked improvement, reflecting the success of its strategic pivot. In its most recent fiscal quarter, the company reported earnings per share of $0.70, a significant turnaround from a loss of $0.27 per share in the same period the previous year. Revenue increased by 228% to $187.3 million, with a substantial portion attributed to its AI cloud services.
Stock Performance and Market Sentiment
The market has responded positively to Iris Energy’s strategic initiatives. The company’s stock price has experienced significant growth, with a 186% increase year-to-date as of September 2025. Analysts have raised their price targets for IREN, with some projecting a 12-month price target of $30.38, indicating potential for further growth.
Analyst Ratings and Investor Outlook
Analyst sentiment towards Iris Energy remains favorable. The company holds a “Strong Buy” consensus rating from multiple analysts, reflecting confidence in its business model and growth prospects. Investors are particularly optimistic about the company’s expansion into AI cloud services and its strategic partnerships, such as its designation as a preferred partner by NVIDIA.
Conclusion
Iris Energy Ltd’s successful transition from cryptocurrency mining to AI cloud services has positioned the company for sustained growth. With a robust financial performance, positive market sentiment, and strategic partnerships, Iris Energy is poised to capitalize on the increasing demand for AI computing power. Investors and industry observers will be closely monitoring the company’s progress as it continues to expand its AI cloud services and explore new opportunities in the tech sector.