IREN's Nvidia Deal Fuels a 34% Weekly Surge, But a $248 Million Loss and SEC Probe Loom
Published on 05/10/2026 at 22:01 | Redaktion boerse-global.de
The story of IREN Limited is one of staggering contrasts. The company posted a net loss of nearly $248 million in its third fiscal quarter, yet its stock soared 34% in a single week. That paradox captures the market's conviction that the former bitcoin miner's radical pivot toward artificial-intelligence infrastructure is the right bet — even if the current numbers tell a different tale.
The latest catalyst came from Nvidia. Last week, the chip giant signed a $3.4 billion cloud-capacity agreement with IREN and secured the right to buy up to 30 million shares at $70 apiece. That followed a prior commitment from Microsoft for almost $10 billion in computing power. The two mega-deals have transformed IREN into a key player in the AI arms race, with its Texas-based liquid-cooled data centres now targeting a total of five gigawatts of capacity.
But the balance sheet still bears the scars of transformation. Revenue fell to $144.8 million in the fiscal third quarter as bitcoin-mining income slumped and old hardware was switched off. AI cloud services, however, nearly doubled to $33.6 million. Management's goal is to hit $3.7 billion in recurring annual revenue by calendar 2026. To keep pace, the company spent over $1.4 billion on capital expenditure in the quarter alone, while cash reserves stood at $2.6 billion at the end of April.
Should investors sell immediately? Or is it worth buying IREN?
The market remains deeply divided on valuation. Goldman Sachs raised its price target to $44 — still far below the current level — implying scepticism about the rally's staying power. BTIG, by contrast, sees fair value at $80, praising the ability to lock in both Microsoft and Nvidia as clients. The average Wall Street target now sits at roughly $74. On the Frankfurt exchange, the stock closed Friday at €51.91, up 7% on the day and 746% over the past year.
Amid the euphoria, a regulatory cloud has appeared. The Securities and Exchange Commission is examining whether the financing arrangements between Nvidia and companies like IREN amount to circular funding — where chipmakers' investments flow straight back into purchases of their own hardware. Nvidia has poured more than $40 billion into AI firms in the first four months of 2026. The chip giant will report quarterly earnings on 20 May, and investors will be watching for any comment on the SEC probe or the terms of its infrastructure partnerships.
To accelerate its transformation, IREN has also been on an acquisition spree. It agreed to buy software specialist Mirantis for $625 million in its own equity and snapped up Spanish developer Nostrum Group to enter the European market. Meanwhile, the company's annualised volatility hovers around 120%, a reminder that the road from bitcoin miner to AI landlord is anything but smooth. For now, every step in GPU installation and customer billing will shape the next move in the stock.
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