Is IREN a good stock to buy? We came across a bullish thesis on IREN Limited on Stay Invested’s Substack by Denis Gorbunov. In this article, we will summarize the bulls’ thesis on IREN. IREN Limited’s share was trading at $49.48 as of May 4th. IREN’s trailing and forward P/E were 31.71 and 62.50 respectively according to Yahoo Finance.
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IREN Limited (IREN) is a vertically integrated data center operator positioned to benefit from both the AI infrastructure buildout and energy constraints shaping the industry. Unlike traditional data center companies, IREN combines ownership of large-scale facilities with access to predominantly renewable energy, including long-term contracts with BC Hydro in Canada and a 750 MW liquid-cooled campus in Texas.
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This energy-first strategy provides a structural advantage as power availability becomes a bottleneck, with management highlighting a projected 44 GW supply shortfall over the next three years. Historically reliant on Bitcoin mining, which still accounted for over 90% of revenue as of Q2 2026, IREN is actively pivoting toward AI Cloud services, renting computing capacity to enterprises. The key catalyst is a $9.7 billion agreement with Microsoft, supported by upfront prepayments and tied to the deployment of 140,000 Nvidia GB300 GPUs, with AI Cloud revenue projected to scale from $40–50 million to $3.4 billion by 2026.
This growth is funded through a mix of asset-backed deferred revenue and significant capital investment, including a $5.8 billion hardware agreement with Dell. While this transition is already underway, it comes with risks, including substantial share dilution, rising leverage, and negative free cash flow during the heavy capex phase.
However, improving Bitcoin prices and successful AI Cloud execution could drive meaningful revenue expansion and operating leverage, positioning IREN for significant upside if it delivers on its ambitious growth targets.
Previously, we covered a bullish thesis on IREN Limited (IREN) by Anxious-Criticism652 in May 2025, which highlighted the company’s transition from Bitcoin mining to AI cloud, strong GPU-driven revenue growth, scalable infrastructure, and debt-free balance sheet. IREN’s stock price has appreciated by approximately 442.54% since our coverage. Denis Gorbunov shares a similar view but emphasizes on the energy-integrated model, Microsoft-backed AI expansion, and risks from dilution, leverage, and heavy capex.
IREN Limited is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held IREN at the end of the fourth quarter which was 52 in the previous quarter. While we acknowledge the risk and potential of IREN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IREN and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
