Why Iris Energy Shares Are Climbing Wednesday

Iris Energy Limited IREN shares are trading higher on Wednesday.

The company said it has purchased a further 568 GPUs to expand its existing AI cloud services business to 816 of the latest-generation NVIDIA Corporation NVDA H100 GPUs.

The company said in a press release that it experienced increasing demand for its AI cloud service, now allowing customers to train extensive next-gen AI & LLM workloads with trillions of parameters.

Delivery and commissioning of the additional GPUs is expected during the second quarter of 2024.

Iris Energy said financing workstreams are underway to support the expected ongoing growth in the company’s AI cloud services business.

Earlier this month, the company said it executed a cloud service agreement with Poolside AI SAS for 248 NVIDIA H100 GPUs. 

The contract is for an initial 3-month term, with an extension option for an additional three months at the customer’s election.

The company will release its second-quarter results tomorrow.

Price Action: IREN shares are trading higher by 14.6% to $7.93 on the last check Wednesday. 

Photo: Gerd Altmann from Pixabay