For a long time, IREN Limited (NASDAQ:IREN) was considered a Bitcoin mining operation company, but the company's cloud approach and AI deals have successfully transitioned it into a vertically integrated AI cloud provider.
The company came under the spotlight when it announced raising its year-end AI Cloud annualized run-rate revenue target to more than $4 billion, up from $3.7 billion, on July 20. The stock rallied nearly 20% after this news.
Out of the new target, roughly 85% is already under contract, as IREN Limited (NASDAQ:IREN) won multi-year cloud services deals with key AI developers, reflecting $2.8 billion in total contract value.
A testament to the company's scaled AI Cloud business is the expansion of 3MW of self-built AI Cloud capacity to 480MW being delivered this year, with expectations of the 1.2GW level in 2027. There's no doubt the company is expanding its customer base across hyperscalers, enterprises and AI developers, but investors want to know whether this announcement actually means something in the long term or if the growth prospects have already been priced in.
The news supports the earlier revenue projection by Freedom Capital. The firm expects the company's revenue to "explode" from $717 million this year to $3.1 billion and $8.5 billion in FY27 and FY28, respectively. The company's latest AI Cloud update provides additional revenue visibility for a business that is expanding at a rapid pace.
#billion #year #revenue #company
The company came under the spotlight when it announced raising its year-end AI Cloud annualized run-rate revenue target to more than $4 billion, up from $3.7 billion, on July 20. The stock rallied nearly 20% after this news.
Out of the new target, roughly 85% is already under contract, as IREN Limited (NASDAQ:IREN) won multi-year cloud services deals with key AI developers, reflecting $2.8 billion in total contract value.
A testament to the company's scaled AI Cloud business is the expansion of 3MW of self-built AI Cloud capacity to 480MW being delivered this year, with expectations of the 1.2GW level in 2027. There's no doubt the company is expanding its customer base across hyperscalers, enterprises and AI developers, but investors want to know whether this announcement actually means something in the long term or if the growth prospects have already been priced in.
The news supports the earlier revenue projection by Freedom Capital. The firm expects the company's revenue to "explode" from $717 million this year to $3.1 billion and $8.5 billion in FY27 and FY28, respectively. The company's latest AI Cloud update provides additional revenue visibility for a business that is expanding at a rapid pace.
#billion #year #revenue #company
2 months ago
