Iren Stock Soars as Wall Street Embraces AI Cloud Pivot

Iren stock surges over 15% after Bernstein raises price target amid AI cloud pivot

Iren stock saw a significant rise. Wall Street analysts have increased the stock's price target. This follows Iren's move into the AI cloud business. Bernstein analysts are confident in Iren's new direction. The company forecasts substantial revenue growth by 2026. Iren balances its bitcoin mining with AI workloads. The company's valuation is still below data center competitors. Iren stock rose more than 15% on Wednesday after Wall Street analysts increased the stock price target after the firm, which is one of the largest self-operated BTC miners in the US, broke away from the pack. Bernstein analysts have increased their price target on Iren to $75 from $20, signaling nearly 80% potential upside, as per a report. The move reflects growing confidence in Iren's shift toward building its own AI cloud business instead of depending on co-location deals with partners such as CoreWeave (CRVW), as per a CoinDesk report. The stock has already seen a stunning rally, climbing more than eight-fold from its 52-week low of $5.13 in April, and year-over-year, Iren shares are up 365%, as reported by CoinDesk. ALSO READ: Uniqure stock soars 196% after breakthrough Huntington's disease drug results Initially, skepticism surrounded whether a bitcoin miner could successfully expand into a capital-heavy AI cloud model. But Bernstein now views Iren's pivot as credible. The company is guiding for rapid growth, forecasting $500 million in annual recurring revenue by the first quarter of 2026 on 23,300 GPUs, as reported by CoinDesk. That compares to just $14 million in annual recurring revenue in Q1 2025, as per the report. Beyond AI, Iren continues to leverage its 3-gigawatt power portfolio, balancing bitcoin mining and AI workloads to boost revenue per megawatt. Its 50 EH/s bitcoin mining operation currently generates an estimated $600 million in annualized EBITDA at today's bitcoin prices, providing funding for its AI buildout, as per the CoinDesk report. ALSO READ: Crypto giant Tether could soon be in the league of OpenAI and SpaceX - key developments you should know Bernstein's updated valuation assigns 87% of IREN's enterprise value to AI cloud and co-location potential at its massive 2GW West Texas site, leaving 13% attributed to bitcoin mining, as per the report. At the revised target, Iren would be valued at $7.5 million per megawatt. That's higher than other AI-focused miners but still well below established data center players like CoreWeave, suggesting there could be more upside ahead, Bernstein analysts led by Gautam Chhugani wrote. Why did Iren's stock jump today? Because analysts at Bernstein raised their price target from $20 to $75, showing stronger confidence in the company's AI strategy. What makes Iren different from other bitcoin miners? Iren is pivoting into AI cloud services instead of relying only on bitcoin mining.

IREN Stock Is Rallying Wednesday: What's Driving The Action? - IREN (NASDAQ:IREN)

IREN Limited IREN shares are trading higher Wednesday following positive analyst coverage from Arete Research. Here's what you need to know. What Happened: Arete Research initiated coverage on IREN on Wednesday with a Buy rating and price target of $78. The Street-high target on IREN is currently $82 and the Street-low target is at $10, according to Benzinga data. The bullish initiation comes after Roth Capital maintained a Buy rating and raised its price target to $82 on Tuesday. Other recent analyst changes include a price target increase to $42 from Canaccord and a price target increase to $32 from BTIG. At the beginning of the week, IREN announced expanded AI cloud capacity and introduced new revenue guidance. Shares are now up approximately 28% over the past five trading sessions. The company announced the purchase of $674 million worth of GPUs from Nvidia on Monday. The expanded fleet of GPUs is expected to increase IREN's AI cloud annualized run-rate revenue (ARR) to $500 million by the first quarter of 2026. "Doubling our fleet to more than 23,000 GPUs in just a few months highlights the strength of our vertically integrated platform and our ability to meet urgent, long-term demand," said IREN CEO Daniel Roberts. "The shift toward pre-contracting ahead of delivery provides further momentum for the growth of our AI Cloud business." IREN Price Action: IREN shares have rallied more than 500% over the past six months. The stock hit new 52-week highs on Wednesday. IREN was up 15.94% on Wednesday, trading at $47.47 at last check. The stock is well off its 52-week low of $5.12. Read Next: Analysts Highlight IREN's Cloud Services As Long-Term Engine Behind Continued Stock Rally Image: Shutterstock IRENIREN Ltd$48.4315.9%OverviewMarket News and Data brought to you by Benzinga APIs

Why Iren Stock Surged Higher This Week

Iren Limited (IREN -9.51%) is catching the attention of Wall Street analysts. Several new notes came out this week supporting the buy case for Iren stock. Demand for the services of the data center operator is quickly rising. That helped lead to a jump of almost 20% in the stock this week as of Friday morning, according to data provided by S&P Global Market Intelligence. Iren is becoming a more familiar name Iren has been pivoting its data center operations less for cryptocurrency mining and more to serve the increasing need for AI compute power and other high-performance computing applications. Earlier this week, tech giant Nvidia and AI research and deployment company OpenAI announced a new plan to add massive data center capacity utilizing Nvidia's platform. That partnership reinforced the demand picture for the growing compute capacity that Iren is developing. It helped lead several Wall Street analysts to get even more optimistic on Iren stock. Arete Research initiated coverage on Iren with a buy rating and a price target of $78 per share, according to reports. Two other firms raised their price targets on Iren as well this week. Wall Street is gaining optimism because Iren is preparing for the growing market. Earlier this month Iren co-founder and co-CEO Daniel Roberts gave investors a preview of what's coming, stating, "Demand for our AI Cloud is accelerating as we prepare for the delivery of approximately 9,000 Nvidia Blackwell GPUs [graphics processing units] over the coming months." Management has also provided investors with a preview showing its plans to operate with 20,000 GPUs and eventually sees a path for up to 60,000. It seems clear that the demand will be there. If it executes its plan, Iren stock could have further to run.