Long-Term Investment Outlook for Iren and Applied Digital
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 12h ago
0mins
Source: Fool
- Market Performance Comparison: Iren's stock has surged over 400% in the past year, while Applied Digital has seen a remarkable 500% increase, highlighting both companies' strong performance in the AI infrastructure sector that has captivated investors.
- Financial Highlights: Iren recently secured a $9.7 billion AI cloud contract with Microsoft, with net income improving from a loss of $51.7 million in the previous year to a gain of $384.6 million in Q1 of fiscal 2026, indicating the success of its business pivot.
- Business Model Differences: Iren retains the flexibility to switch between cryptocurrency and high-performance computing, while Applied Digital focuses on building high-performance data centers and offering long-term leases, allowing it to capitalize on more predictable cash flows.
- Investor Considerations: For investors seeking cash flow predictability, Applied Digital may be more appealing, whereas Iren is suited for those with a higher risk tolerance due to its flexibility and potential for significant returns.
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Analyst Views on IREN
Wall Street analysts forecast IREN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IREN is 80.40 USD with a low forecast of 39.00 USD and a high forecast of 136.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
8 Buy
2 Hold
2 Sell
Moderate Buy
Current: 59.840
Low
39.00
Averages
80.40
High
136.00
Current: 59.840
Low
39.00
Averages
80.40
High
136.00
About IREN
IREN Limited is an Australia-based company, which owns and operates data centers powered by 100% renewable energy. Its facilities are optimized for Bitcoin mining, artificial intelligence (AI) cloud services, and other power-dense compute. Its data center mining facilities are in Canal Flats, Mackenzie, Prince George and Childress. Bitcoin Mining provides security to the Bitcoin network. Al Cloud Services provides cloud compute to Al customers, approximately 1,896 NVIDIA H100 and H200 GPUs. Its Canal Flats facility is in the Canadian Rockies, 100 kilometers (km) from Cranbrook regional airport and 500km east of Vancouver. Its facility is in Prince George, the city in northern British Columbia, located 500 km north of Vancouver. Its facility is located in Childress County, Texas, over 250 miles northwest of Dallas and in close proximity to multiple wind and solar generating facilities in the region. Its Childress operations comprise 200 Mega Watt of operating data centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Long-Term Investment Outlook for Iren and Applied Digital
- Market Performance Comparison: Iren's stock has surged over 400% in the past year, while Applied Digital has seen a remarkable 500% increase, highlighting both companies' strong performance in the AI infrastructure sector that has captivated investors.
- Financial Highlights: Iren recently secured a $9.7 billion AI cloud contract with Microsoft, with net income improving from a loss of $51.7 million in the previous year to a gain of $384.6 million in Q1 of fiscal 2026, indicating the success of its business pivot.
- Business Model Differences: Iren retains the flexibility to switch between cryptocurrency and high-performance computing, while Applied Digital focuses on building high-performance data centers and offering long-term leases, allowing it to capitalize on more predictable cash flows.
- Investor Considerations: For investors seeking cash flow predictability, Applied Digital may be more appealing, whereas Iren is suited for those with a higher risk tolerance due to its flexibility and potential for significant returns.
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Iren Secures $9.7 Billion Deal with Microsoft
- Successful Strategic Shift: Iren has signed a $9.7 billion AI cloud contract with Microsoft, marking a successful transition from Bitcoin mining to AI data center services, which is expected to further drive revenue growth and enhance market competitiveness.
- Significant Financial Improvement: Iren's net income improved from a loss of $51.7 million in the first quarter of the previous fiscal year to a gain of $384.6 million in Q1 of fiscal 2026, demonstrating strong growth potential in the AI infrastructure sector.
- Outstanding Market Performance: Iren's stock has surged over 400% in the past 12 months, while Applied Digital's stock has increased by over 500%, reflecting strong demand for AI infrastructure and positive investor sentiment.
- Future Growth Potential: Applied Digital's backlog has reached $16 billion, with a 250% revenue increase in its latest quarter, indicating that the company's business model in high-performance data centers can generate predictable long-term cash flows, attracting more investor interest.
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