IREN Ltd. snapped a seven-day losing streak on Monday, surging as much as 21 percent in intra-day trading to $40.77, as investors drew excitement from its higher annualized run-rate revenue (ARR) target of $4 billion.
Initially targeted at $3.7 billion, IREN Ltd. (NASDAQ:IREN) said that the increase followed the bagging of $2.8 billion worth of multi-year cloud services contracts with leading AI developers, including Microsoft, Nvidia, Perplexity, Figure AI, Together AI, Fluidstack, Fireworks AI, Fal AI, Hume AI, and a new leading AI developer across both bare metal and managed cloud services.
For illustration purposes only. Photo by Brett Sayles on Pexels
1.2 GW Target in 2027
IREN Ltd. (NASDAQ:IREN) co-founder and co-CEO Daniel Roberts highlighted the company’s rapid expansion of AI cloud capacity as it aims to broaden its customer base across hyperscalers, enterprises, and AI developers.
This year alone, the company is targeting to deliver 480 MW of capacity, and ramp up the figure to 1.2 GW by next year. These compare with only 3 MW of self-built capacity in July 2025.
“IREN remains selective in allocating capacity ahead of commissioning, prioritizing diversification and growth across its customer base and platform layers. Demand from hyperscalers, enterprises, AI developers and frontier labs continues to exceed IREN’s available and planned capacity, and IREN is engaged with customers across its entire 2026 and 2027 expansion program,” it said.
“Contracted pricing continues to strengthen. Recent contracts also include customer prepayments representing approximately 45 percent of the associated GPU capital expenditure, reducing IREN’s net funding requirement for those deployments.3 Across the portfolio, IREN’s customer contracts have a weighted average term of approximately 4 years,” it added.
Institutional Participation Rises
More institutional investors appear to be increasing their exposure to IREN Ltd. (NASDAQ:IREN).
Data from Insider Monkey showed that 53 hedge funds held stakes in the company as of the first quarter of the year, up from 36 in the fourth quarter.
However, institutional conviction notably declined, as combined holdings ended at $1.61 billion during the period, marking a 3.6 percent dip from the $1.67 billion in the previous quarter.
This signaled that while more professional investors seek exposure to its stock, larger allocations remain limited as investors reassess AI-related valuations across the sector.
Over the past few months, investors have grown increasingly cautious about the continued heavy spending on AI, questioning whether massive investments are sustainable over the long term, particularly as low-cost Chinese AI models have challenged the need for such heavy spending.
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