Iren is on the verge of a technical breakout as it shifts focus from cryptocurrency mining to AI infrastructure. In the fiscal third quarter, the company's AI cloud services revenues nearly doubled from $17.3 million to $33.64 million, indicating a strong pivot towards AI.
A five-year partnership with Nvidia, which includes a right to purchase up to 30 million shares at $70 each, signals confidence from a key supplier. Additionally, Iren's $9.7 billion deal with Microsoft for Nvidia GB300 chips and a $1.8 billion equipment agreement with Dell further solidify its position in the AI sector.
Revenue projections are optimistic, forecasting growth from $764 million this year to $9.55 billion by fiscal 2029, although these come with concerns about free cash flow. The technical indicators suggest a classic cup and handle pattern, with a breakout point around $75.
Todd Gordon of Inside Edge Capital has already included Iren in his fast money accounts and is considering a 1%-2% allocation in his flagship growth portfolio, with a stop loss set at $60. The overall sentiment is cautiously optimistic, hinging on the company's ability to improve its financials while capitalizing on its new direction away from crypto mining