IREN Broadens Its AI Customer Base: Can Diversification Pay Off?
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IREN Broadens Its AI Customer Base: Can Diversification Pay Off? Namrata Chandak Tue, September 22, 2026 at 10:12 AM EDT 2 min read IREN MSFT NVDA PEAI.PVT CRWV IREN Limited IREN is broadening its AI Cloud customer base as it seeks to reduce dependence on a handful of large counterparties. The company is targeting hyperscalers, enterprises, AI developers, frontier labs and channel partners across different industries, geographies and workload types. This strategy is becoming increasingly important as Microsoft and NVIDIA together account for a substantial majority of IREN's contracted revenues. The company has made progress in expanding its roster. In July 2026, IREN signed multi-year cloud-services contracts with Prometheus, Perplexity and Together AI worth about $2.8 billion in aggregate total contract value. It also signed a new contract with a leading frontier AI lab in August. Recent customer additions include Cohere, Figure AI, Fal AI and Higgsfield AI, alongside renewals and expansions with existing customers. Diversification is also coinciding with stronger contract economics. IREN reported that three-year contract pricing increased 125%, while five-year pricing rose 70% in recent months. Recent three-year contracts exceeded $20 million in revenue per IT MW, while active discussions were around $25 million per IT MW. Still, customer diversification carries risks. Some AI customers are early-stage or private companies, while shorter contracts could bring greater variability in utilization and pricing. With much of its 2026 capacity sold out, IREN is focusing on securing a broader mix of customers for 2027 and 2028. Its ability to expand this base while maintaining pricing, utilization and contract quality will remain key to reducing concentration risk. CoreWeave CRWV is a direct specialized AI-cloud competitor to IREN. In the second quarter of 2026, revenues reached $2.58 billion, while revenue backlog stood at about $104 billion. Active power reached 1.5 GW and contracted power about 3.7 GW, highlighting its scale in serving AI labs, hyperscalers and enterprises. Nebius Group NBIS reported second-quarter 2026 group revenues of $582.3 million, including $575 million from AI Cloud, while ARR reached $3 billion. It closed four AI-cloud deals averaging more than $1 billion each and raised its year-end 2026 contracted-power target to 5 GW, supporting further customer expansion. Shares of IREN have risen 12% over the past six months, underperforming the S&P 500 composite but better than the broader industry. In terms of forward 12-month Price/Sales (P/S), IREN is currently trading at 4.29X, which is at a premium to the industry average of 2.59X. Estimates for IREN's fiscal 2027 and 2028 earnings have been revised downward in the past week. Currently, IREN carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IREN Limited (IREN) : Free Stock Analysis Report Nebius Group N.V. (NBIS) : Free Stock Analysis Report CoreWeave Inc. (CRWV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com).
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