Iren Limited’s (IREN) shares are down roughly 22% over the past six months, with the AI infrastructure company caught in the recent Big Tech sell-off. However, Bernstein remains largely positive about the company, noting that Iren has “demonstrated remarkable success in building its AI cloud business.”
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New trading tool for IREN bulls/bearsBernstein Hails Iren Business Health
Bernstein analyst Gautam Chhugani on Monday updated his assessment of Iren, noting that Iren remains his team’s top pick among Bitcoin miners now focused on AI infrastructure. However, he also trimmed his IREN price by 20%, from $125 to $100, which is still almost 100% upside from IREN’s closing price of $50.64 on Friday.
Chhugani is a five-star analyst that ranks in the top 3.6% of Wall Street analysts tracked on TipRanks.com, placing him at 444 out of more than 12,000 analysts. He boasts a success rate of 55% and an average return of 35.90%.
Iren Could Generate $3.7B in ARR
Chhugani backed his bullish comments by pointing to Iren’s 150 graphics processing unit (GPU) fleet, which the analyst pointed out has not been contracted out. As a result, the fleet could help Iren generate $3.7 billion in annual recurring revenue upon full deployment by the first quarter of calendar year 2027.
In November, Iren secured a $9.7 billion AI deal with Microsoft (MSFT) to provide access to chip design giant Nvidia’s (NVDA) latest GB300 GPUs. Chhugani noted that half of Iren’s GPU capacity is now reserved for Microsoft for five years — the AI cloud company hit the capacity number after recently entering a GPU purchase agreement with Nvidia.
With the other half, Iren can meet service new customers and supply capacity as needed, the analyst contended. He added that Iren has also rejigged its balance sheet to address investor concerns about high capital costs for its cloud business.
For instance, 95% of its $5.8 billion spending on GPUs for Microsoft came from financing packages with less than a 4% a year interest rate. Some of the funds came from Microsoft’s repayments and others from loans secured against the GPUs, the analyst said.
Is IREN a Good Stock to Buy?
Across Wall Street, Iren’s shares remain a Moderate Buy based on analysts’ consensus rating. This breaks down to eight Buys, three Holds, and one Sell assigned by 12 analysts over the past three months.
However, the average IREN price target of $73.30 implies about 49% upside.
