Iren Limited (IREN) rose by over 3% early Monday, pumping up the fractional gain seen in its previous trading session. This comes as the Australian AI cloud infrastructure company hit a key milestone in its capacity expansion efforts.
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Trade IREN with leverageIren Pushes Ahead with Sweetwater Campus
On Friday, Iren announced the energization of its 1.4-gigawatt Sweetwater 1 data center site in Texas. This means that the neocloud company has successfully connected its bulk, high-voltage substation to the Texas power transmission grid through the Electric Reliability Council of Texas.
The data center is part of Iren’s 2-gigawatt Sweetwater Hub, a campus housing Sweetwater 1 and Sweetwater 2 across 1,800 acres of land. The campus can support more than 700,000 liquid-cooled graphics processing units, according to Iren’s website.
‘A Key Milestone’
In a new statement, Iren described the event as “a key milestone” in efforts to develop the campus and further called it “an important step toward bringing grid-connected capacity online and reducing time-to-compute for customers.”
Cantor Fitzgerald analyst Brett Knoblauch in February pointed to progress at this site, noting that Iren “left no doubt” about the power for the facility. However, Freedom Capital recently slapped a Hold rating on IREN stock, arguing that Iren’s transition from a crypto miner to an AI cloud infrastructure company could drag on longer than promised.
Iren shares are up roughly 21% year-to-date but have fallen more than 31% over the past three months. However, Daniel Roberts, Iren’s co-founder and co-CEO, pointed out that the milestone in the project shows “the strength of [the company’s] supply chain relationships.”
“It is another example of our ability to design and construct large-scale infrastructure reliably and at speed to meet market demand,” Roberts added.
Is IREN a Good Stock to Buy Now?
Across Wall Street, analysts continue to approach Iren’s shares with caution and have a Moderate Buy consensus rating on the stock. This is based on eight Buys, three Holds, and one Sell rating issued over the past three months.
However, the average IREN price target of $73.30 suggests about 61% upside in the months ahead.
