$IREN - AI revenue about to explode
$IREN stock has done very little in 2026 while most other AI stocks have had a strong run. I believe the main reason is that IREN hadn’t yet secured major hyperscaler contracts.
In Q1, IREN generated just $34M in AI revenue, so the company was still being viewed primarily as a Bitcoin miner. And with Bitcoin down 27% YTD, that hasn’t exactly helped the story.
But I think this is about to change.
IREN has now started servicing its $2B-per-year Microsoft contract, which means AI revenues are about to ramp significantly. As that Microsoft cash starts flowing in, IREN will have much more financial flexibility to accelerate its AI infrastructure buildout.
As for the lack of another major hyperscaler announcement, I believe IREN is simply holding out for better pricing and terms rather than rushing to sign a deal.
The setup is becoming increasingly attractive: AI revenues are about to explode, cash flow is coming in, and the company has more options to accelerate execution.
From here, I expect execution to accelerate significantly.