Iren Limited’s (IREN) shares are down roughly 14% over the past three months as the AI cloud company was caught in the recent wave of worries about Big Tech’s massive AI capital expenditure. Yet, IREN stock is up about 27% year-to-date, with analysts seeing a bigger 52% upside in the 12 months ahead.
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The potential gain comes as Iren has recently entered a purchase agreement with chip design giant Nvidia (NVDA) for graphics processing units to expand its fleet to 150,000. The company has also stated plans to spend about $3.5 billion on servers, storage, and networking equipment during the latter half of this year — a move H.C. Wainwright’s five-star analyst Mike Colonnese believes implies that “customer demand is strong enough.”
Iren is aiming to expand its GPU capacity and hopes to generate over $3.7 billion in annual revenue from year-end onwards. Meanwhile, despite recently trimming his price target on Iren, Cantor Fitzgerald analyst Brett Knoblauch maintained his Buy rating on Iren, noting that the AI infrastructure sector is “an attractive place to invest.”
How Iren Compares to Rivals
Compared to its rivals CoreWeave (CRWV) and Nebius (NBIS), Iren by far leads in terms of its upside potential. The former currently offers less than 1%, and the latter about 6%, showing the gap analysts see in terms of room for growth.
However, it is important to point out that as of Wednesday afternoon, CRWV had jumped more than 73% YTD, while Nebius — the only one of the trio with a Strong Buy consensus rating from Wall Street — has climbed by an even bigger 89%.
Is IREN a Good Stock to Buy?
Across Wall Street, analysts’ consensus rating on IREN’s shares remains a Moderate Buy. 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 implies about 52% upside from current trading levels.
