IREN (NasdaqGS:IREN) Valuation in Focus Following $9.7 Billion Microsoft AI Cloud Deal

IREN (NasdaqGS:IREN) just inked a $9.7 billion, multi-year cloud services deal with Microsoft, drawing fresh attention from investors. This agreement places IREN at the center of hyperscale AI cloud infrastructure and marks a significant step in its transformation strategy.

See our latest analysis for IREN.

Recent excitement around IREN has sent its share price up a remarkable 496.37% year-to-date, powered by its Microsoft mega-deal and accelerating AI cloud strategy. Momentum has clearly been building, as shown by the 238.10% 90-day gain and the astonishing three-year total shareholder return of 2,000%, as investors reevaluate IREN’s long-term growth story and switching risk profile.

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With IREN’s valuation surging on record deals and ambitious growth targets, investors are now asking if the recent rally leaves more upside ahead or if the market has already priced in the company’s bold future.

Most Popular Narrative: 36.5% Undervalued

According to BlackGoat’s widely followed narrative, IREN’s fair value sits far beyond the latest $62.38 closing price. This paints a picture of a significant disconnect between market price and underlying business prospects. This valuation snapshot is gaining attention as investors gauge the Microsoft deal’s impact.

“IREN owns and operates 4 Bitcoin mining sites in North America, powered by 100% renewable energy, leveraging 'stranded energy' from hydro and solar power plants. IREN's goal is to capitalise on excess renewable energy and support energy networks. Bitcoin mining is just an effective way to do so.”

Read the complete narrative.

Can lightning-fast revenue growth, bold expansion plans, and a transition into AI infrastructure really justify such a high valuation? This narrative points to aggressive numbers, ambitious technology pivots, and a bullish bet on market-shaking margins. Unpack which crucial assumptions are fueling the dramatic upside—what’s fact, and what’s faith?

Result: Fair Value of $98.21 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, uncertainties remain, as execution delays or further shareholder dilution could challenge confidence in IREN’s ambitious growth and AI transition story.

Find out about the key risks to this IREN narrative.

Another View: High Multiple Raises Eyebrows

Looking from a market multiples perspective, IREN currently trades at a price-to-sales ratio of 34.1x, materially higher than the peer average of 26.5x and the broader US Software industry average of 4.8x. The fair ratio, calculated by regression analysis, sits at 18.6x. These elevated ratios hint at heightened valuation risk, especially if market enthusiasm fades. Does IREN’s growth story truly justify such a premium?

Story Continues

See what the numbers say about this price — find out in our valuation breakdown.NasdaqGS:IREN PS Ratio as at Nov 2025

Build Your Own IREN Narrative

If you see the story unfolding differently or want to dig into the numbers for yourself, you can craft your own perspective in just a few minutes. Do it your way

A great starting point for your IREN research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include IREN.

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