IREN Ltd (NASDAQ:IREN) could have significant upside ahead, with Bernstein citing the company’s new $3.4 billion AI cloud partnership with NVIDIA Corp (NASDAQ:NVDA) as catalst for its $100 price target.
The new target, with a reaffirmed outperform rating, implies roughly 76% upside from IREN’s May 7 closing price of $56.85.
NVIDIA Partnership Changes The Story
Bernstein analysts said the long-term strategic agreement gives IREN both critical AI infrastructure credibility and stronger access to next-generation GPU supply, The Block reported on Friday.
The deal also includes an equity option allowing NVIDIA to invest $2.1 billion into IREN at $70 per share.
According to Bernstein, NVIDIA’s involvement materially strengthens IREN’s positioning around its flagship 2GW Sweetwater AI data center project.
IREN still needs to secure anchor enterprise customers for the Sweetwater site, but Bernstein says the NVIDIA relationship substantially improves execution credibility.
Microsoft Project Still On Track
Bernstein also noted IREN remains on schedule for its 200MW Horizon data center buildout tied to Microsoft Corp (NASDAQ:MSFT).
The first 50MW facility is expected to come online in the third quarter.
The analysts added that IREN’s recent $625 million Mirantis acquisition strengthens the company’s software and cloud orchestration capabilities.
That deal helps move IREN beyond basic infrastructure leasing toward becoming a vertically integrated AI cloud operator capable of offering managed GPU services.
Why It Matters
The AI infrastructure race continues expanding beyond hyperscalers into power-rich data center operators with GPU access.
Bernstein expects IREN to scale deployments across British Columbia and Childress, Texas, under existing Microsoft and NVIDIA agreements.
The firm projects total AI cloud annual recurring revenue could reach $3.7 billion by calendar year 2026.
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