Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 5 May, 26 | IREN | Buy | USD 49.48 | USD 52.0 | USD 54.5 | Same day | Closed |
10.54%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
IREN Limited owns and operates bitcoin mining data centers. It also provides high performance computing solutions, including Al cloud services. The company was formerly known as Iris Energy Limited and changed its name to IREN Limited in November 2024. IREN Limited was incorporated in 2018 and is headquartered in Sydney, Australia.
Increase in AI Cloud Services Revenue: USD 17.3 Mn in Q2FY26 vs USD 7.3 Mn in Q1FY26
Increase in Interest Income: USD 15.8 Mn in Q2FY26 vs USD 7.1 Mn in Q1FY26
Decrease in Adjusted EBITDA: USD 75.3 Mn in Q2FY26 vs USD 91.7 Mn in Q1FY26
Decline in Total Revenue: USD 184.7 Mn in Q2FY26 vs USD 240.3 Mn in Q1FY26
Key investment risks for IREN include execution delays in GPU deployments and data center construction, volatility in Bitcoin economics, dependence on hyperscaler contracts, financing and refinancing risks, and potential regulatory or power infrastructure disruptions impacting AI Cloud expansion
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 49.48 | 44.5 | 52.0 | 54.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Accelerating Transition Toward AI Cloud Infrastructure: IREN Limited continued to advance its strategic transition from Bitcoin mining toward AI Cloud infrastructure during Q2 FY26, with management increasingly allocating capacity toward higher-value AI workloads. The company highlighted accelerating AI Cloud revenue growth as GPU deployments ramped across its data center network. Total AI Cloud Services revenue increased to USD 17.3 million in Q2 FY26 from USD 7.3 million in Q1 FY26, reflecting rising customer adoption and growing monetization of GPU infrastructure. The company also reiterated that its targeted 140k GPU expansion remains on track to support a projected USD 3.4 billion annualized revenue run-rate by the end of CY26.
Major Financing Secured for Microsoft Contract: The company materially strengthened its financing profile after securing a USD 3.6 billion GPU financing package tied to its Microsoft contract. Management indicated that the financing carries an interest rate below 6% annually and, when combined with Microsoft’s USD 1.9 billion prepayment, covers nearly 95% of GPU-related capital expenditure requirements. IREN noted that the financing structure is aligned with GPU deployment schedules and customer cash flows, improving balance sheet flexibility while supporting large-scale infrastructure expansion.
Expanding Power Capacity and Data Center Footprint: IREN continued to expand its secured power portfolio to support future AI infrastructure demand. During the quarter, the company secured a new 1.6GW data center campus in Oklahoma, increasing total secured grid-connected power capacity to more than 4.5GW. The Oklahoma site includes approximately 2,000 acres with grid studies completed and power scheduled to ramp from 2028. Management emphasized that the expanded power portfolio strengthens customer engagement opportunities and broadens the company’s addressable hyperscaler market.
Customer Demand and Contracted Revenue Visibility: Management highlighted that customer demand remains robust, supported by increasing hyperscaler and enterprise engagement across multiple sites. The company disclosed that it currently has approximately USD 2.3 billion in annualized revenue under contract, including around USD 0.4 billion linked to Prince George GPU deployments and USD 1.9 billion tied to the Microsoft contract. IREN further stated that ongoing negotiations across remaining British Columbia capacity continue to support potential incremental revenue opportunities as GPU deployment scales further.
Financial Performance Impacted by Non-Cash Charges: The company reported total revenue of USD 184.7 million in Q2 FY26 compared with USD 240.3 million in Q1 FY26, reflecting lower Bitcoin mining revenue amid the operational transition toward AI Cloud services. Net loss stood at USD 155.4 million in Q2 FY26 versus net income of USD 384.6 million in Q1 FY26, primarily impacted by unrealized losses on financial instruments, debt conversion inducement expenses, mining hardware impairments, and elevated stock-based compensation expenses. Adjusted EBITDA declined to USD 75.3 million from USD 91.7 million in Q1 FY26, although the company maintained positive operating cash flow generation.
Strong Liquidity Position Supports Expansion Plans: IREN significantly improved its liquidity position during the quarter through diversified capital-raising initiatives. Cash and cash equivalents increased to USD 3.26 billion as of December 31, 2025, compared with USD 1.03 billion at the end of Q1 FY26. Total assets expanded to USD 7.03 billion from USD 4.27 billion in the prior quarter, supported by investments in property, plant and equipment, GPU infrastructure, and financing inflows. The company also disclosed that more than USD 9.2 billion in total funding had been secured financial year-to-date across customer prepayments, convertible notes, GPU leasing, and GPU financing initiatives.
Operational Execution and Competitive Positioning: Management emphasized that IREN’s vertically integrated operating model continues to provide a competitive advantage through in-house engineering, procurement, construction, and operational capabilities. The company reported that construction across Horizon 1-4 facilities remains on schedule for Microsoft GPU deployment timelines, while British Columbia fit-outs for NVIDIA B200/B300 deployments have been completed pending final GPU deliveries. Management also stated that the company’s established infrastructure and execution track record continue to resonate positively with customers seeking rapid AI compute deployment capabilities.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to IREN Limited (NASDAQ: IREN) at the closing market price of USD 49.48, as on 04 May,2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Capital Markets
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| IREN IREN Ltd |
6.58 19.57% | 40.20 | - | 12.27 | 5.38 | 1.58 | 6.69 | 27.55 |
| GS Goldman Sachs Group Inc |
-10.19 0.96% | 1055.03 | 17.21 | 16.00 | 4.47 | 2.26 | 11.15 | |
| MS Morgan Stanley |
-4.56 2.12% | 210.94 | 16.50 | 13.76 | 2.80 | 1.65 | ||
| SCHW Charles Schwab Corp |
0.98 0.96% | 102.54 | 22.86 | 17.39 | 6.14 | 4.28 | ||
| CIIHF CITIC Securities Company Limited |
- -% | 3.50 | 12.33 | 7.94 | 0.69 | 1.13 | 7.69 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on May 5, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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