Iren AI infrastructure stock soars 493% as Jefferies sets $79 target on Microsoft, Nvidia deals

This AI infrastructure stock has soared nearly 500% in a year. Jefferies says it can go higher

Iren has exploded over the past year, but it still has room to run as the infrastructure company continues to secure deals with major artificial intelligence hyperscalers, according to Jefferies. The investment bank initiated the AI infrastructure name at buy. It also set a $79 price target on shares, implying 36% upside from Wednesday's close. "IREN has positioned itself in a unique place among AI infrastructure providers with an extraordinarily large long-term powered land bank (~6 GW) and a vertically integrated GPU cloud approach," analyst Jonathan Petersen said Wednesday in a note to clients. "Owning the land and data centers provides IREN with unique optionality to service customers from powered shells to full GPU cloud builds." Shares have surged 493% over the past 12 months. Their explosive growth comes as the secured contracts with hyperscalers such as Microsoft and Nvidia to deliver $3.1 billion in annual recurring revenue. IREN 1Y mountain IREN stock is up nearly 500% over the past year. Once a bitcoin mining company, Iren is likely to continue reaping the rewards of its "compelling strategic pivot" to a vertically integrated AI cloud provider, particularly as it strikes more deals with major AI players, according to Jefferies. A growing portfolio of high-powered deals "positions IREN as a credible competitor to CRWV and NBIS," Petersen wrote. Jefferies' call falls in line with consensus on Wall Street. Of the 15 analysts covering Iren, 10 have a buy or strong buy on the stock, LSEG data shows.

Jefferies initiates Iren stock with buy rating on AI pivot By Investing.com

Investing.com - Jefferies initiated coverage on Iren Ltd. (NASDAQ:IREN) with a Buy rating and a price target of $79.00. The stock currently trades at $58.11, representing significant upside potential to the analyst's target. The company has delivered a remarkable 493% return over the past year, though InvestingPro analysis suggests the stock may be overvalued at current levels relative to its Fair Value estimate. The firm said Iren has positioned itself among AI infrastructure providers with a long-term powered land bank of approximately 6 gigawatts and a vertically integrated GPU cloud approach. The company's contracts with Microsoft and Nvidia position Iren to deliver $3.1 billion of annual recurring revenue. Iren has evolved from a Bitcoin mining operation into a vertically integrated AI cloud provider. The company secured a 200-megawatt Microsoft lease at Childress, a five-year contract valued at $9.7 billion for Nvidia GB300 GPU capacity. The Microsoft deal includes a $1.9 billion prepayment and $3.65 billion in GPU financing at approximately 6% rates. Iren also signed a $3.4 billion AI cloud contract with Nvidia. Jefferies said the Microsoft structure enables Iren to recoup its $8.8 billion investment within the contract term at unlevered internal rates of return exceeding 20%. The firm said owning land and data centers provides Iren with optionality to service customers from powered shells to full GPU cloud builds.According to InvestingPro data, Iren's revenue surged 105% in the last twelve months, reflecting its rapid transformation. For deeper insights into Iren's valuation and growth prospects, investors can access comprehensive Pro Research Reports covering this and 1,400+ other US equities. In other recent news, IREN Limited has completed its acquisition of Ingenostrum, S.L., also known as Nostrum Group, a developer of AI data centers in Spain. This acquisition provides IREN with approximately 490 megawatts of secured, grid-connected power in Spain, marking the company's entry into the European market. Additionally, IREN has executed a transmission connection agreement for a planned 800 MW data center development in Bundey, South Australia, which is expected to be one of the largest data centers in the Asia-Pacific region. Following this development, B.Riley has raised its price target for IREN to $96, maintaining a Buy rating on the stock. Macquarie also reiterated an Outperform rating with a $90 price target for IREN, highlighting the significance of the Australian site. Meanwhile, Needham has adjusted its financial estimates for Iris Energy, citing a delayed ramp-up of AI cloud revenue expected through calendar year 2026. This revision also includes reduced projections for bitcoin contributions due to scaling down mining operations and falling bitcoin prices. These developments indicate significant strategic moves by IREN in both the European and Australian markets, while Iris Energy faces challenges in its AI and bitcoin segments. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.