IREN Slides After Earnings Miss as Bernstein Cuts Target but Backs AI Pivot

Overview

• IREN reported an EPS loss of $0.44 and revenue of $184.7 million versus forecasts for a $0.07 loss and $229.6 million in sales, and the stock fell about 4.5% to $48.36 on lighter-than-normal volume.
• Bernstein lowered its price target to $100 yet kept an Outperform rating, saying the change reflects share dilution and a wind-down of mining rather than weaker AI prospects.
• Microsoft has contracted 77,000 of IREN’s 150,000 GPUs under a five-year agreement that analysts say equates to roughly $1.94 billion in annualized revenue.
• To fund the buildout, IREN lined up a $5.8 billion purchase agreement with Dell for Nvidia processors and arranged financing and customer prepayments that cover about 95% of the needed capital, while investors weigh dilution from a $6 billion share sale program that has raised $1 billion so far.
• Bernstein models IREN as an AI-first operator with zero value assigned to future Bitcoin mining, projecting $2.6 billion in cloud revenue by 2027 and $6 billion by 2030 as the fleet scales to about 275,000 GPUs.