IREN's Price Targets Skyrocket Amid AI Data Center Pivot
IREN's transformation from Bitcoin mining to AI data centers has been met with differing price targets by two Wall Street banks. Northland Securities initiated coverage with an Outperform rating and a $99 price target, while JPMorgan's Richard Choe upgraded his rating to Overweight with a $65 target.
The divergence in targets is striking, but both analysts agree that IREN's pivot is real, accelerating, and expensive. Pricing power has been cited as the most tangible catalyst by both analysts, with neocloud contract rates jumping from $10, $15 per watt to $15, $20 per watt and beyond.
IREN is targeting annualized contractual revenue of up to $4.0 billion this year, a growth trajectory that would represent a fundamental reshaping of the company's revenue profile. The company has also secured a five-year partnership with Nvidia valued at roughly $5.50 billion, which serves as the anchor tenant of the transformation.
IREN has begun delivering on its promises, handing over the Horizon 1 site to Microsoft and achieving NVIDIA Exemplar Cloud status on the NVIDIA GB300 NVL72 platform. The company also secured conditional inclusion in ERCOT's Batch Zero process as a baseline load, a critical regulatory step toward connecting its planned data centers.
The transformation has left deep marks on IREN's financials, with AI Cloud Services revenue reaching $128.8 million and a net loss of $702.6 million driven largely by non-cash impairments totaling $638.8 million.