TLDR
- IREN stock surged 13.1% on Monday, reaching $43.91, after reports Anthropic is seeking 1.4 GW of AI cloud capacity from Australian data centers
- The Australian Financial Review reported Anthropic’s potential A$22 billion tender, with a decision expected in at least six weeks
- Anthropic may split the contract across four or five providers, meaning IREN would not necessarily win the full deal
- Wall Street holds a consensus “Moderate Buy” on IREN, with an average price target of $82.36; Bernstein has a $100 target
- IREN missed its last earnings, reporting ($0.25) EPS vs. the ($0.22) estimate, with revenue of $144.79M against expectations of $219.69M
IREN stock jumped 13.1% on Monday, closing at $43.91, after the Australian Financial Review reported that Anthropic is looking to secure at least 1.4 gigawatts of AI cloud capacity from Australian data centers as part of a reported A$22 billion tender.
The stock hit an intraday high of $44.97, up from a prior close of $38.82. Volume reached roughly 53.4 million, about 27% above the average session volume.
IREN has been named as a leading contender for the contract, with its Bundey campus and existing grid connections cited as key assets.
The AFR reported Anthropic plans to use at least 1 GW of that capacity by the end of 2027, following the opening of its Australian office earlier this year.
However, it’s worth keeping perspective here. Anthropic is expected to divide the project among four or five providers rather than awarding it to a single developer. No contract has been signed, and a final decision is not expected for at least six weeks.
The move also rides a broader wave of optimism around former Bitcoin miners transitioning into AI infrastructure. TeraWulf recently landed a major Anthropic deal, which has boosted hopes that IREN could follow a similar path.
Wall Street Weighs In
Analyst sentiment is broadly positive. Bernstein has reiterated a Buy rating with a $100 price target. Cantor Fitzgerald raised its target from $77 to $99 with an “overweight” rating. Jefferies initiated coverage with a Buy and a $79 target. JPMorgan is the outlier, keeping an “underweight” rating with a $46 target.
The consensus across 20 analysts sits at “Moderate Buy,” with an average price target of $82.36. Goldman Sachs has set a $50 target.
Institutional ownership stands at 41.08%, with several funds raising their positions in recent quarters.
Recent Earnings Miss
IREN’s most recent earnings report, released May 8th, came in below expectations. The company posted EPS of ($0.25), missing the consensus estimate of ($0.22). Revenue came in at $144.79 million, well short of the $219.69 million analysts had forecast.
IREN carries a debt-to-equity ratio of 1.44, a current ratio of 3.72, and a market cap of approximately $15.69 billion. Its 50-day moving average sits at $54.72, meaning Monday’s price is still trading below that level.
The company recently appointed Kambiz Aghili as Chief Product Officer and Michael Nudelman as Chief Development Officer. Both bring backgrounds from Oracle Cloud Infrastructure, Google, and CyrusOne.
Analysts expect IREN to post EPS of ($1.25) for the full year.
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