IREN Limited IREN is taking major steps to expand its AI cloud business. IREN has entered into a purchase agreement with Dell Technologies for air-cooled Blackwell systems that will support its previously announced five-year, $3.4 billion AI cloud contract with NVIDIA, slated to be deployed across IREN's data centers at the Childress, TX, campus, with commissioning expected to begin in early 2027.
IREN expects the Blackwell deployment to significantly increase annualized run-rate revenues (ARR). IREN now targets to hit $4.4 billion ARR. This marks a significant increase of $700 million from its prior $3.7 billion ARR target. The additional ARR is expected to come from bringing additional GPU capacity online and making it available to customers under existing and planned AI cloud deployments.
The deployment will be carried out at Childress using existing infrastructure, which should help speed up the rollout. Management continues to highlight "time-to-compute" as a key factor in the AI infrastructure market, where customers are seeking faster access to GPU capacity. IREN's ownership of power, data center infrastructure and operational capabilities should help it deploy systems more quickly and support large-scale AI workloads.
The agreement is valued at approximately $1.6 billion and includes GPUs, servers, storage, networking equipment, integration services and warranties. Further, IREN is pursuing GPU financing for the deployment, consistent with its approach to previous hardware purchases. If commissioning proceeds on schedule, the Blackwell deployment could become an important driver of IREN's revenue growth. The Zacks Consensus Estimate for fiscal 2026 and 2027 indicates revenue growth of around 48.1% and 250.3%, respectively.
IREN Stock Faces Stiff Competition
IREN faces intense competition from Applied Digital APLD and TeraWulf WULF in the AI infrastructure space.
In May 2026, Applied Digital signed a 15-year lease agreement with a U.S.-based investment-grade hyperscale customer for Polaris Forge 3, APLD’s fourth AI data center campus. Polaris Forge 3 will provide 300 MW of IT capacity and will be supported by approximately 430 MW of utility power and will be used to support large-scale AI training and inference workloads. The agreement increases APLD's total contracted lease revenues across four AI Factory campuses to approximately $31 billion.
In May 2026, TeraWulf acquired the Muskie Data Campus, a new AI and high-performance computing (HPC) development site in Eastern Kentucky. The campus is expected to support more than 1 GW of data center capacity. The Muskie Data Campus becomes TeraWulf’s second major digital infrastructure campus in Kentucky, in addition to its 480 MW Justified Data campus in Hancock County. The acquisition expands the WULF’s development pipeline and increases its ability to support AI and HPC customers across different regions and power markets.
IREN’s Price Performance, Valuation & Estimates
Shares of IREN have surged 71.8% in the year-to-date period against the Zacks Financial Miscellaneous Services industry’s decline of 5.9%.
IREN YTD Price Return Performance
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IREN shares are overvalued, as suggested by the Value Score of F. In terms of forward price/sales, IREN is trading at 9.12X compared with the industry’s 2.97X.
IREN Forward 12 Months (P/S) Valuation
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The Zacks Consensus Estimate for IREN’s bottom line in fiscal 2026 is pegged at a loss of 32 cents per share, revised downward over the past seven days. IREN reported earnings of 4 cents per share in fiscal 2025.
Image Source: Zacks Investment Research
Currently, IREN carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).