IREN Stock Plunged Last Week. Now Could Be a Good Time to Buy.

IREN Stock Plunged Last Week. Now Could Be a Good Time to Buy.

Joe Tenebruso, The Motley Fool

Mon, August 31, 2026 at 2:35 AM GMT+3 3 min read

• IREN -12.53%
• NVDA -4.57%

Shares of IREN (NASDAQ: IREN) fell 15% this past week after the cloud computing provider's quarterly results fell short of investors' lofty expectations.

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IREN is well placed to profit from the AI race

IREN has what many businesses need.

"We have spent years assembling what is difficult to replicate: power, land, data centers, compute, software, and people," Co-CEO Daniel Roberts said in IREN's earnings release on Thursday.

That places the cloud services provider in a strong position to capitalize on the artificial intelligence (AI) boom.

"Exponential AI consumption growth has fueled demand for compute capacity well beyond the available supply of infrastructure," Roberts said. "IREN was built for this moment."

IREN is largely sold out of its available capacity for 2026 and has already secured $4 billion in annualized run rate revenue.

The problem is that IREN's financial results do not yet reflect its tremendous growth potential.

Although IREN's AI cloud services revenue more than doubled sequentially to $70.5 million in the quarter ended June 30, its total revenue declined by 5% to $137.2 million, as it continued to shift resources away from its cryptocurrency mining operations.

It also didn't help that IREN's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 68% to $19.2 million.

Consider buying IREN's stock when it's on sale

Yet patient investors may want to look further ahead.

Not only is IREN rapidly adding capacity, but it's also contracting it out at higher prices. IREN is in active discussions to provide capacity at roughly $25 million per megawatt, up from its recent $20 million per MW deals.

Moreover, customers are so eager to get their hands on compute that they've been agreeing to prepay up to 55% of GPU-related costs.

Perhaps unsurprisingly, given these favorable trends, Wall Street analysts are still largely bullish on IREN's stock.

H.C. Wainwright analyst Mike Colonnese, for one, has a buy rating and a $90 price target on IREN's shares, signifying potential gains of over 150% for investors who buy shares now.

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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

IREN Stock Plunged Last Week. Now Could Be a Good Time to Buy. was originally published by The Motley Fool