IREN locked in a five-year, $3.40 billion artificial intelligence cloud contract with NVIDIA, giving the miner-turned-infrastructure company another giant customer just weeks after it said it already had $3.10 billion under contract and was guiding to $3.70 billion in annual recurring revenue by year-end 2026. The deal also gives NVIDIA rights to buy 30 million IREN shares at $70 apiece, a package that could amount to a potential $2.1 billion equity injection if exercised.
Shares closed at $47.74 on May 19, 2026, after falling 5.39% on the day. Even after that slide, the stock was still up 459% over the past year and 26.4% year to date, though it had slipped 15.59% over the prior week. The 52-week range ran from $8.28 to $76.87, showing how violently investors have already re-priced the name as the company pushes deeper into AI infrastructure.
The contract lands on top of an already large Microsoft relationship. IREN has a $9.70 billion deal with Microsoft, and together the two agreements underscore how quickly the company has shifted from a crypto-mining story to one built around power, data centers and cloud capacity. Daniel Roberts said the NVIDIA partnership “further validates IREN's key role in the AI infrastructure ecosystem.”
For the March quarter in fiscal 2026, the financials were much rougher than the contract headlines. Revenue came in at $144.80 million, below the $219.29 million consensus estimate, while the company booked a $247.80 million net loss. AI Cloud Services revenue nearly doubled sequentially to $33.60 million in Q3 FY26, but IREN also recorded $140.40 million in impairments on decommissioned mining hardware, a reminder that the legacy business is still being written down even as the new one scales up.
The gap between the growth story and the balance sheet is the real stress point. Free cash flow ran to negative $1.40 billion, convertible notes payable sat at $3.69 billion, and the company has had two consecutive revenue misses. IREN still carries 1,210MW in build for 2027 and a 5GW secured power portfolio, but the conversion of that power into durable profit is not guaranteed. Customer concentration in Microsoft and NVIDIA, along with ERCOT interconnection risk in Texas, remains an execution issue that could matter as the company races to turn contracted demand into cash flow.
The market is still pricing in success. The consensus Street target stands at $74.07, with a bull-case path at $78.33 and a bear-case path at $46.04. At $47.74, IREN sat above the bear case but well below the average target on May 19, leaving the stock caught between the promise of an expanding AI cloud business and a business model that is still burning cash while it builds.
