TLDR
- Jefferies initiated coverage on Iren (IREN) with a Buy rating and a $79 price target; the stock was trading around $58.11.
- IREN jumped roughly 5% in premarket trading Thursday following the analyst note.
- Jefferies highlighted IREN’s ~6 gigawatt powered land bank and vertically integrated GPU cloud model.
- The company holds a $9.7 billion, five-year Microsoft contract and a $3.4 billion Nvidia AI cloud deal, targeting $3.1 billion in annual recurring revenue.
- IREN’s revenue grew 105% over the past twelve months as it transitioned from Bitcoin mining to AI infrastructure.
Iren (IREN) stock jumped around 5% in premarket trading Thursday after Jefferies initiated coverage with a Buy rating and a $79 price target. The stock was trading at roughly $58.11 at the time of the initiation, implying upside of around 36% to the analyst’s target.
Jefferies analyst Jonathan Petersen led the coverage initiation, calling out IREN’s position as a vertically integrated AI cloud provider with a powered land bank of approximately 6 gigawatts.
The firm pointed to IREN’s contracts with Microsoft and Nvidia as the backbone of the investment case. Together, those deals are expected to drive $3.1 billion in annual recurring revenue.
The Microsoft deal is a five-year, $9.7 billion contract for Nvidia GB300 GPU capacity, anchored at IREN’s 200 MW Childress facility. The structure includes a $1.9 billion prepayment and $3.65 billion in GPU financing at around 6% interest rates.
Jefferies said that arrangement allows IREN to recoup its $8.8 billion investment within the contract term, with unlevered internal rates of return exceeding 20%.
IREN also has a separate $3.4 billion AI cloud contract with Nvidia. Jefferies said these two relationships place IREN in the same competitive conversation as CoreWeave (CRWV) and Nebius (NBIS).
From Bitcoin Mining to AI Infrastructure
IREN was previously known primarily as a Bitcoin miner. The company has since pivoted to become a vertically integrated AI cloud provider, a shift that Jefferies described as a “compelling strategic pivot.”
Revenue grew 105% over the past twelve months, reflecting the pace of that transformation.
Owning its own land and data centers gives IREN flexibility to serve customers across a range of configurations — from powered shells through to full GPU cloud deployments, Jefferies noted.
Expansion Into Europe and Australia
Beyond its existing US footprint, IREN recently completed the acquisition of Ingenostrum, S.L., known as Nostrum Group, a developer of AI data centers in Spain. The deal adds roughly 490 megawatts of secured, grid-connected power and marks IREN’s first move into the European market.
IREN also signed a transmission connection agreement for a planned 800 MW data center in Bundey, South Australia — expected to be one of the largest data centers in the Asia-Pacific region.
Following the Australian announcement, B. Riley raised its price target on IREN to $96 with a Buy rating. Macquarie reiterated an Outperform rating with a $90 price target.
Needham has taken a more cautious view, trimming its estimates for IREN citing a delayed ramp-up of AI cloud revenue through calendar year 2026 and lower projections for Bitcoin contributions.
The stock has returned around 493% over the past year.
🚨 Our JUNE Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for June, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
