Analyst Makes Bold IREN Stock Call After Earnings

IREN Limited IREN shares sank more than 7% after its fiscal fourth-quarter results, but Citizens JMP is treating the selloff as a buying opportunity as the company's AI cloud business rapidly overtakes its shrinking Bitcoin-mining operation. Analyst Gregory Miller reiterated a Buy rating and $80 price target, implying roughly 97% upside from about $38, arguing that IREN's underlying AI cloud business continues to gain momentum.

IREN operates large-scale data centers originally built around Bitcoin mining but is increasingly redirecting power and infrastructure toward AI cloud services. The company generates revenue by supplying GPU-based computing capacity to customers alongside its remaining cryptocurrency-mining operations.

Fourth-quarter revenue fell 27% year over year to $137.23 million, although that still beat Wall Street's $132.29 million estimate. IREN posted an adjusted loss of $0.41 per share, better than the $0.55 loss analysts expected but sharply below the $0.08 profit reported a year earlier.

The bigger story was underneath those headline numbers.

Bitcoin-mining revenue plunged 63% to $66.7 million, while AI Cloud Services revenue jumped 907% to $70.5 million from $7 million a year earlier. AI cloud revenue also more than doubled sequentially from $33.6 million in the third quarter, showing how quickly IREN's business mix is changing.