In September, IREN saw a 77.2% surge in its stock price after securing massive amounts of computing power contracts for its AI cloud unit. The company also doubled its GPU fleet, raising its annualized revenue forecast to $500 million by January. IREN is capitalizing on the AI boom with strong growth projections.

IREN reported only a slight increase in AI cloud revenue in August, but expects an 8 to 10 times increase by December. Major deals with Oracle and Nvidia signal high demand for AI compute, benefiting IREN. The company secured 12,400 new chips, doubling its GPU fleet and boosting revenue projections.

After its market cap soared to $15.7 billion, IREN is considered a hot AI stock with strong growth potential in the AI cloud sector. Despite being profitable from Bitcoin mining, the stock is pricing in profitable AI cloud growth. However, investors should be cautious of potential economic downturns affecting this sector.

Read more at Nasdaq: Why IREN Limited Rallied Over 77% in September