IREN plans $25B–$30B AI buildout

• IREN plans to spend $25 billion–$30 billion on AI infrastructure in fiscal 2027.
• Bernstein said the spending plan may have concerned investors, with shares down 6.3% in pre-market trading.
• Bernstein said improving AI cloud economics could support faster returns on new infrastructure spending.

IREN plans to spend $25 billion–$30 billion building its AI cloud business in fiscal 2027.

Bernstein said the spending figure may have concerned investors, despite improving economics across IREN's AI cloud operations.

“The high capex number may have spooked the market, but the investors seem to ignore improving unit economics with faster payback on incremental capex,” Bernstein analysts led by Gautam Chhugani wrote.

Bernstein estimated GPU spending now has a payback period of about two years, compared with roughly three years under IREN's 2025 Microsoft contract.

Following the announcement, the IREN share price was down 6.3% at $37.96 in pre-market trading, while Bernstein retained its Outperform rating and $100 price target.

IREN's AI cloud revenue rose nearly eightfold to $128.8 million in fiscal 2026, while Bitcoin (CRYPTO:BTC) mining revenue reached $578.2 million.

The company reported $707 million in total revenue but a $702.6 million net loss, partly due to $638.8 million in impairments linked to its AI expansion.