• In recent months, IREN has shifted from its roots in Bitcoin mining to secure a five-year, US$9.70 billion AI cloud contract with Microsoft and build out a multi-gigawatt data center pipeline for hyperscalers.

• This move into vertically integrated AI infrastructure, with control over land, power, and GPUs, positions IREN as part of an emerging “neocloud” class serving large-scale AI workloads.

• Next, we’ll examine how the multi-year Microsoft deal and AI infrastructure expansion reshape IREN’s investment narrative for long-term investors.

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For IREN to make sense in a portfolio, you have to believe its pivot from Bitcoin mining to vertically integrated AI infrastructure can justify a premium valuation, despite big execution and funding questions. The Microsoft AI cloud contract and multi‑gigawatt pipeline remain the key near‑term catalysts, but the recent burst of analyst upgrades, sharp price swings, and the launch of a 2x short IREN ETF underline how polarised sentiment has become rather than changing the fundamental story. The stock’s very large 1‑year return, fresh equity and convertible note issuance, and heavy reliance on Nvidia GPUs all raise the bar on flawless delivery and capital allocation. In that context, the Microsoft deal looks like the anchor, while the main risk is simply that the AI revenue ramp proves slower, lumpier, or more expensive than the market is currently assuming.

However, one emerging risk around funding and volatility is easy to underestimate at first glance. The analysis detailed in our IREN valuation report hints at an inflated share price compared to its estimated value.

The Simply Wall St Community’s 24 fair value estimates for IREN span roughly US$16 to US$136, reflecting sharply different views on where this AI pivot could lead. When you set those side by side with the stock’s recent volatility, leverage build up and the concentration in a single hyperscale customer, it becomes clear you are sharing a market with people making very different calls on how this story might play out.

Explore 24 other fair value estimates on IREN – why the stock might be worth less than half the current price!

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your IREN research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

• Our free IREN research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate IREN’s overall financial health at a glance.