IREN's AI Cloud Revenue Just Jumped 687%

IREN Ltd. (IREN, Financials) is starting to appear less like a Bitcoin miner and more like an AI infrastructure firm. In fiscal 2026 it became a lot clearer. IREN's AI cloud revenue rose to $128.8 million from $16.4 million a year earlier, an increase of roughly 687%.Revenue from AI Cloud for the fiscal fourth quarter was $70.5 million, increasing 110% year over year. Meanwhile, Bitcoin mining is heading in the other direction.Revenue from mining dropped 41% from a year ago to $66.7 million, reflecting the company's shift to AI infrastructure and cloud services.Citizens analyst Gregory Miller said the firm raised its expectations to reflect the increasing contribution from AI cloud and the growth of IREN's platform.Miller reiterated a Buy rating and maintained his $80 price target, representing around 114% upside potential from recent levels.The wider Wall Street outlook is likewise favorable, with the average price objective of $77.70 implying more than 100% upside. The story for investors is more about the change in the composition of the business.IREN is spending more on building its infrastructure, but its fastest increasing revenue source is now connected to AI, not crypto mining.The question therefore is whether AI cloud revenues can scale quickly enough to pay for the investments required to fuel that expansion.