IREN Limited ( IREN ) extended its rally on Friday, continuing the momentum from the previous day. The company delivered record fiscal 2025 results that topped Wall Street estimates and unveiled a $168 million GPU expansion to accelerate its AI cloud push.

The company’s revenue more than doubled year-over-year to $501 million, net income swung to $86.9 million from a prior-year loss, and adjusted EBITDA surged more than tenfold to $269.7 million. The results underscored IREN’s rapid evolution from a pure-play Bitcoin miner into a diversified AI infrastructure provider.

Analysts See Cloud Services As Key Growth Driver

JP Morgan analyst Reginald L. Smith said the latest quarter showcased record revenue and operating profit, primarily powered by Bitcoin mining, but emphasized that the real story lies in IREN’s fast-growing Cloud Services division.

Management has earmarked about $500 million in near-term capital expenditures to secure more than 9,000 additional NVIDIA GPUs, which will lift its fleet to roughly 10,900 units by the end of 2025. That scale-up is expected to drive annualized Cloud Services revenue of $200 million to $250 million by year-end 2025, compared with just $26 million today.

Related: IREN Stock Rallies After Strong Q4 Earnings Beat, NVIDIA Preferred Partner Status

Smith noted that IREN ( IREN ) disclosed fresh purchases of 2,400 Blackwell GPUs for $168 million, adding to its earlier 4,200-unit order, cementing its position as a serious AI infrastructure player.

Most of these systems will be deployed at the company’s 50 MW Prince George facility in British Columbia, while future rollouts may utilize its upcoming 50 MW Horizon 1 data center in Texas. Preparations are also underway for Horizon 2, a 50 MW liquid-cooled site in Childress.

Solid Balance Sheet and Financing Strategy

Financially, IREN ( IREN ) ended June with $564 million in cash and has financing agreements covering about 40% of its GPU investments. Management expects to fund the balance through existing liquidity and quarterly operating cash flow, which reached $90 million in the period.

Smith pointed to a record cash operating profit of $89 million, with a 47% margin, although slightly below JP Morgan’s forecast due to higher SG&A expenses associated with hiring for Cloud Services.

Price Target Raised

Adding to the bullish outlook, Canaccord Genuity analyst Joseph Vafi reiterated a Buy rating on IREN ( IREN ) and lifted the price forecast from $23 to $37.

Price Action: As of the last check on Friday, IREN ( IREN ) shares were trading 16.3% higher at $26.67.

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