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IREN received two analyst promotions this week.
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The stock has soared in the last year due to a huge deal with Microsoft.
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The stock trades at a sizable premium compared to its AI cloud computing revenue.
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10 stocks we like more than Iren ›
Actions of IREN (NASDAQ: IREN) it soared more than 20% this week, according to data from S&P Global Market Intelligence. A cryptocurrency miner that is transitioning to running cloud data centers for artificial intelligence (AI) has received two analyst upgrades and has been popular with retail traders. He also has a long-term contract with microsoft worth billions of dollars.
As of this writing at 11:27 a.m. on Friday, January 16, IREN stock is up 21.6% this week. Here’s why and if the stock is a buy right now.
On Monday, Bernstein named IREN as one of the top AI stocks for 2026. On Tuesday, HC Wainwright upgraded the stock to a buy due to its successful pivot from Bitcoin mining to an AI cloud provider. These two analyst upgrades were the catalyst for IREN’s stock price to start rising this week.
The company is a Bitcoin miner, but is transitioning its data centers to become an AI cloud provider. It signed a massive $9.7 billion deal with Microsoft earlier this year, which was the catalyst that sent the stock into the stratosphere, up nearly 400% in the last year alone.
However, if you look at IREN’s current business, it barely makes any revenue from AI cloud services. Last quarter, AI cloud revenue was only $7.3 million, representing a small portion of the entire cloud computing infrastructure industry. Investors are betting big on the future of IREN stock, which is becoming very popular in the online investment communities on X and Reddit.
After its massive run this year, IREN stock now trades with a market capitalization of $16 billion. That’s a huge premium for a company that generates less than $10 million in revenue per quarter in the segment of the future, cloud computing with artificial intelligence.
It has a huge contract with Microsoft, but its development will take many years and with huge development costs. It will be many years before IREN can reach sufficient scale to generate profits from AI cloud computing, if it ever does. Valued at a huge premium to its IA earnings, investors would be wise to avoid buying IREN stock at this time.
Before buying shares in Iren, consider this:
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