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

Jefferies Issues Buy Rating on Iren After Explosive Stock Surge

Iren has captured Wall Street's attention with a remarkable 493% stock surge over the past year, and Jefferies believes the AI infrastructure company still has significant room to grow 1

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. The investment bank initiated coverage on Iren stock with a buy rating and set a price target of $79, implying 36% upside from Wednesday's close of $58.11 2

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. Analyst Jonathan Petersen highlighted that Iren has positioned itself uniquely among AI infrastructure providers with an extraordinarily large long-term powered land bank of approximately 6 gigawatts and a vertically integrated GPU cloud approach 1

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Strategic Pivot from Bitcoin Mining Drives Growth

The company's transformation from a Bitcoin mining operation into a vertically integrated AI cloud provider represents a compelling strategic pivot that continues to deliver results 1

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. Iren secured major contracts with hyperscalers including Microsoft and Nvidia to deliver $3.1 billion in annual recurring revenue 1

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. The Microsoft deal includes a 200-megawatt lease at Childress with a $1.9 billion prepayment and $3.65 billion in GPU financing at approximately 6% rates 2

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. Additionally, the company signed a five-year contract valued at $9.7 billion for Nvidia GB300 GPU capacity and a separate $3.4 billion AI cloud contract with Nvidia 2

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Vertically Integrated Approach Creates Competitive Advantage

Jefferies emphasized that owning the land and AI data centers provides Iren with unique optionality to service customers from powered shells to full GPU cloud builds 1

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. The Microsoft structure enables Iren to recoup its $8.8 billion investment within the contract term at unlevered internal rates of return exceeding 20% 2

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. This growing portfolio of high-powered deals positions Iren as a credible competitor to other AI infrastructure players, according to Petersen 1

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. InvestingPro data shows Iren's revenue surged 105% in the last twelve months, reflecting its rapid transformation 2

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Expansion into European and Asia-Pacific Markets

Iren recently completed its acquisition of Ingenostrum, S.L., also known as Nostrum Group, a developer of AI data centers in Spain, providing the company with approximately 490 megawatts of secured, grid-connected power and marking its entry into the European market 2

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. The company also executed a transmission connection agreement for a planned 800-megawatt data center development in Bundey, South Australia, expected to be one of the largest data centers in the Asia-Pacific region 2

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. Following this development, B.Riley raised its price target for Iren to $96, maintaining a buy rating, while Macquarie reiterated an Outperform rating with a $90 price target 2

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. Of the 15 analysts covering Iren, 10 have a buy or strong buy on the stock, demonstrating broad Wall Street confidence in the company's trajectory 1

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