Why Analysts See More Upside for IREN Stock
In recent weeks, IREN has hit several milestones that have helped push its stock higher. They include:
Nvidia deal: In May, the Sydney-based company secured a two-part $5.5 billion deal from chipmaking giant Nvidia (NVDA). The first part is a $3.4 billion contract for IREN to provide Nvidia with access to its AI cloud infrastructure. The other covers arrangements that give the U.S. chipmaker the room to possibly take about $2.1 billion equity stake in the company in the future. Bernstein analyst Gautam Chhugani recently described this as a “blessing” and upgraded his Buy rating on the stock. However, Needham’s John Todaro is not as bullish, pointing to delays in IREN turning earnings from its key AI contracts into recognized revenue.
Expansion into Europe: This week, IREN finalized its acquisition of Spanish data center operator Ingenostrum (Nostrom Group). This marks its expansion into Europe and adds about 490 megawatts of grid-connected power in Spain to its capacity. Notably, the company’s overall capacity now stands at five gigawatts across its campuses. This week, Jefferies analyst Jonathan Petersen praised IREN for having executed “a compelling strategic pivot.” The company has moved from a Bitcoin miner to an integrated AI cloud company that now has an “extraordinarily large” land bank.
