JPMorgan Backs IREN's AI Pivot with Double Upgrade to Overweight
JPMorgan analyst Richard Choe made a rare double upgrade on Wall Street by moving IREN Limited, formerly known as Iris Energy, from Underweight to Overweight.
The catalyst for this change is IREN's $5.5 billion deal with Nvidia that repositions the company as a leading 'neocloud provider'. This marks a significant shift for IREN, which was previously known for its Bitcoin mining infrastructure.
IREN has been converting its power-hungry facilities into AI cloud computing centers, leveraging existing electrical capacity and physical infrastructure. The Nvidia partnership is just one of several contracts the company has secured with prominent AI players like Prometheus and Figure AI.
The pricing dynamics in this new market are compelling, with AI compute services commanding a premium of $15 to $20 or more per watt over earlier deals. IREN's customer prepayments now contribute between 25% and 50% of revenue, and the company has revised its annual recurring revenue forecast to $4 billion for 2026.
Wall Street's consensus is Strong Buy, with eight analysts rating the stock a Buy and two holding at neutral. The average price target ranges from $77 to $81, implying around 77% upside from recent trading levels near $42.