IREN Stock Lost 43% In A Month – But Retail Expects ‘Huge Revaluation’ After $2.8B Worth Of New Contracts

Iren raised its 2026 annualized run-rate revenue target to more than $4 billion, up from $3.7 billion, following the signing of new multi-year cloud services contracts with leading AI developers.

• The company said its contracts include customer prepayments that cover about 45% of GPU capital expenditures.
• Its customer roster includes Microsoft, Nvidia, and Perplexity, among others.
• Earlier this month, Freedom Capital upgraded the stock to ‘Buy’ from ‘Hold’ and maintained a $58 price target, according to The Fly.

Shares of IREN (IREN) surged 9% in premarket trading on Monday, putting the stock on track to end a seven-session losing streak after the company raised its 2026 AI Cloud annualized run-rate revenue target on the back of new multi-year cloud services contracts.

IREN shares have lost more than 22% during the latest seven-session sell-off from July 9 to July 17. The stock has slumped more than 43% over the past month.

New Contracts Drive ARR Estimates

On Monday, Iren raised its 2026 ARR estimates to more than $4 billion, up from $3.7 billion, after signing new multi-year cloud services contracts with leading AI developers.

The new agreements, worth $2.8 billion in total contract value, mean about 85% of Iren’s year-end ARR target is now under contract, according to the company. Its customer roster includes Microsoft (MSFT), Nvidia (NVDA), Perplexity, Figure AI, Together AI, Fluidstack, Fireworks AI, and Hume AI, among others.

The company said its recent contracts include customer prepayments that cover about 45% of GPU capital expenditures, reducing funding needs.

“In the past 12 months, we have expanded from approximately 3MW of self-built AI Cloud capacity to 480MW being delivered this year, with 1.2GW targeted for 2027, broadening our customer base across hyperscalers, enterprises and AI developers,” said Daniel Roberts, Co-Founder and Co-CEO.

Wall Street Sees Sharp Upside Potential

Earlier this month, Freedom Capital upgraded the stock to ‘Buy’ from ‘Hold’ while maintaining its $58 price target, according to The Fly. This represents a near 57% upside potential from current levels. The brokerage said the stock’s pullback, alongside that of other AI cloud peers, had created a more attractive entry point, leaving “enough upside” to justify the upgrade.

While execution over the next two years remains the key focus, Freedom Capital expects Iren’s revenue to surge from $717 million this year to $3.1 billion in fiscal 2027 and $8.5 billion in fiscal 2028 as it expands capacity.

Retail Expects ‘Revaluation’ Of IREN stock

Retail sentiment on Stocktwits remained ‘extremely bullish’ over the past 24 hours, amid ‘high’ message volumes. IREN was also among the top trending tickers at the time of writing.

One user expects a “huge revaluation” of the stock after the news.

View this Stocktwits post

The stock has shed around 22% of its value so far this year.

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