IREN Shares Drop Amid Investor Skepticism About AI Revenue Projections
Shares of IREN Limited (IREN) fell by 3.3% on Thursday, as investors remain skeptical about the company's ability to deliver on its ambitious artificial intelligence cloud revenue projections. Co-CEO Daniel Roberts acknowledged that while the firm has secured significant contracts—$1 billion in annualized run rate and $4 billion for 2026 capacity—the actual revenue will only materialize once data centers are operational. IREN, which transitioned from Bitcoin mining to building AI-focused data centers, is under pressure to prove it can scale its cloud operations beyond just securing contracts. Roberts emphasized the need to deliver tangible results rather than rely on deal announcements alone. The company reported $70.5 million in AI cloud revenue for Q2 2026 but faces scrutiny over whether these figures will translate into real financial performance. Despite this, ten analysts maintain an average price target of $75.67 per share—over 70% higher than the recent closing price—indicating continued optimism among some market participants.
Topics: AI cloud computing investor sentiment revenue guidance