IREN shares surge on AI cloud infrastructure pivot anchored by five-year NVIDIA contract, with fair value estimated at $95.75 versus current price of $58.06.

IREN has pivoted toward AI cloud and data center infrastructure, backed by a five-year AI cloud services contract with NVIDIA and related equity rights. Share price rose 10.15% in the past day, 28.54% over 30 days, and 45.22% over 90 days.

The most followed valuation narrative on Simply Wall St assigns a fair value of $95.75, implying 39.4% upside. This model assumes IREN reaches $8.7B in revenue and $2.9B in earnings by 2031 (representing a 63% p.a. growth rate), with a 33% profit margin and a future P/E of 25x.

The current P/E of 131.3x sits well above the US Software industry average at 27.7x and the fair ratio of 52.6x, signaling that substantial optimism may already be priced into the valuation. Key risks include potential dilution from a US$6b ATM and Bitcoin price weakness affecting mining economics.