IREN Stock Slumps Amid $684M Loss, Analyst Sees 182% Upside Potential
IREN Limited's stock plummeted after revealing a staggering $684 million loss, mainly due to non-cash write-downs from its Bitcoin mining hardware.
Despite this significant setback, Bernstein analyst Gautam Chhugani remains optimistic about the company's prospects, setting a high price target of $100 for IREN, implying an impressive 182% upside potential.
This upbeat assessment is based on IREN's transition to AI cloud infrastructure, which boasts strong contracts from industry giants Microsoft and NVIDIA.
Notably, the company's AI cloud revenue has been growing rapidly, with management expecting $4 billion in contracted annual recurring revenue by the end of 2026.
The stock remains volatile as investors weigh the risks of execution delays and capital needs against the potential for significant growth in AI data center operations.