IREN Limited (NASDAQ:IREN) is experiencing significant premarket gains following the announcement of new multi-year AI cloud contracts featuring NVIDIA Blackwell GPU deployments. The company’s stock jumped 10.01% to $63.53 in premarket trading as of 7:16 AM EDT on October 7, 2025, building on the previous day’s strong close of $57.75, which represented a 14.45% gain. This momentum reflects investor enthusiasm about IREN’s expanding presence in the AI infrastructure market and its ambitious revenue targets. The data center operator’s strategic pivot toward AI computing is gaining traction with major customers, positioning the company for substantial growth.
IREN Secures Major GPU Deployments to Boost AI Cloud Business
IREN announced it has secured additional multi-year cloud services contracts with leading AI companies for NVIDIA Blackwell GPU deployments. The company remains on track to achieve over $500 million in annualized run-rate revenue from its 23,000 GPUs currently operating and on order by the end of Q1 2026. Customer contracts have been secured for 11,000 of these GPUs, representing approximately $225 million in AI Cloud annualized revenue, expected to be operational by the end of 2025.
The new NVIDIA Blackwell GPUs are being contracted ahead of delivery with an average term of two years, at pricing that supports approximately a two-year revenue payback. This pricing structure demonstrates strong customer demand and favorable economics for IREN’s AI infrastructure business. Co‑Founder and Co‑CEO Daniel Roberts emphasized that the company’s ability to rapidly transition from ASICs to GPUs across its British Columbia campuses, combined with the construction speed of Horizon 1 & 2 data centers, positions IREN uniquely to meet accelerating demand for AI compute.
IREN’s British Columbia campuses and the Horizon 1 & 2 data centers under construction in Childress provide capacity for more than 100,000 GPUs. The company’s 2,910 MW secured power and land portfolio offers significant expansion potential, which is currently the subject of ongoing customer discussions. This infrastructure advantage allows IREN to scale operations rapidly as AI compute demand continues to grow across the industry.
IREN’s Rapid Growth Sparks Debate Over Valuation and Potential
IREN’s stock has delivered exceptional returns, with a year-to-date gain of 488.09% compared to the S&P 500’s 14.60% return. Over the past year, the stock has surged 565.32%, dramatically outperforming the broader market’s 17.20% gain. The company’s market capitalization stands at $15.707 billion, with trading volume of 40.8 million shares on October 6, significantly exceeding its average volume of 31.2 million shares. The stock’s 52‑week range spans from $5.12 to $58.28, with the current price near the upper end of that range.
Analyst sentiment on IREN is mixed, with price targets ranging from a low of $24 to a high of $85. The average analyst price target of $48.58 sits below the current trading price, though several firms have recently raised their targets. Compass Point maintains a Buy rating with a $50 target, Bernstein holds an Outperform rating with a $75 target, and Roth/MKM has set an $82 price target citing substantial AI Cloud growth. However, JPMorgan downgraded the stock from Neutral to Underweight with a $24 price target, expressing concerns about valuation.
The company operates 810 MW of data centers supporting Bitcoin mining, AI cloud services, and AI data centers utilizing 100 % renewable energy. IREN has 257 full‑time employees and maintains a strong balance sheet with $564.53 million in total cash and a debt‑to‑equity ratio of 53.05 %. The company’s revenue for the trailing twelve months stands at $501.02 million with a profit margin of 17.35 %, though it reported negative levered free cash flow of $1.12 billion as it invests heavily in expansion.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.All stock prices were quoted at the time of writing.