IREN Limited: Nvidia's Vote Of Confidence And The Demanding Q3 Results (Downgrade)

IREN Limited secured Nvidia as a strategic partner with a $3.4B, 5-year contract, expanding its AI hosting capacity target to 5 GW. Cloud AI segment revenue surged 94% QoQ to $33.6M, with gross margin at 86.3%; Microsoft and Nvidia validate IREN's transition leadership. I temporarily downgrade IREN from Strong Buy to Buy, citing near-term share dilution risk, operational losses, and asset depreciation during the AI transition.