How IREN’s Index Inclusion and Microsoft-Backed AI Pivot Impact IREN (IREN) Investors

• In February 2026, IREN Limited reported its financial results for the second quarter of 2025, with sales increasing to USD 184.69 million and net loss widening to USD 155.41 million, compared to losses in the same period last year, with six-month revenue of USD 424.99 million and net profit of USD 229.2 million.
• Ahead of its inclusion in the MSCI USA Index in late February, IREN’s transition from Bitcoin mining to AI infrastructure, anchored by a US$9.7 billion Microsoft deal and massive new data center capacity, is reshaping the way investors evaluate the company’s business mix and risk profile.
• Next, we consider how IREN’s upcoming inclusion in the MSCI USA Index and Microsoft-backed AI expansion will impact the existing investment story.

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IREN Investment Story Summary

To own IREN today, you need to believe that the pivot from Bitcoin mining to AI infrastructure can offset the volatility and capital intensity of returns. The latest results highlight that tension. So, while six-month sales and profits are solid, the second quarter net loss widened significantly, while the Microsoft AI deal and February inclusion in the MSCI USA index remain key near-term catalysts. The biggest risks are execution and financing for building large data centers and GPUs. This news does not dispel those concerns.

The expected inclusion in the MSCI USA index after February 27, 2026 appears to be the most relevant here, as it could potentially draw more institutional and passive capital into the stock, just as IREN absorbs significant losses as it expands. This increased visibility, along with the US$9.7 billion Microsoft deal and new production capacity in Oklahoma and Texas, together shape the speed at which the AI ​​cloud story begins to matter more than quarterly fluctuations in Bitcoin or capital spending.

But behind the AI ​​story, investors should be aware that rising leverage and capital needs can quickly become problematic…

Read the full story on IREN (it’s free!)

The IREN story projects $1.5 billion in revenue and $1 billion in revenue by 2028.

We reveal how IREN’s forecast yields a fair value of $84.85, a 101% increase over the current price.

explore other perspectives

Some of the most optimistic analysts assumed that IREN could grow revenue by about 48% annually and lift profits to about US$1.2 billion by 2028, but these are far more optimistic numbers than the consensus and could prove to be either too much or too cautious once the impact of Microsoft’s recent prepayment and widening second-quarter loss is fully reflected in the latest view.

Check out 22 other fair value estimates on IREN – Find out why the stock is worth more than 3x its current price.

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

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