Bernstein sets $100 IREN target after $3.4 billion NVIDIA AI deal
Analysts at research and brokerage firm Bernstein have issued a price target of $100 for IREN, following the announcement of a long-term strategic partnership with NVIDIA that includes a $3.4 billion AI cloud contract and an equity option allowing NVIDIA to invest $2.1 billion at $70 per share.
IREN shares closed at $56.85 on May 7, according to The Block's IREN price page, with Bernstein’s price target implying about 76% upside from that level.
In a note to clients on Friday, Bernstein analysts, led by Gautam Chhugani, characterized the development as a potentially significant technological and capital alignment between the two firms.
The analysts noted that by securing NVIDIA as a strategic partner for its 2GW Sweetwater flagship site, IREN obtains both technological backing for advanced AI factory architecture and a high degree of confidence regarding GPU supply as hardware transitions to next-generation platforms.
According to the analysts, while IREN must still secure an anchor client and broader enterprise customers for the Sweetwater site, the company has improved its competitive and technological positioning given the scale of the 2GW project.
Bernstein also noted that IREN remains on schedule to execute the 200MW Horizon data center delivery for Microsoft, with the first 50MW facility due in Q3.
The report also highlighted how the $625 million acquisition of Mirantis enhances IREN’s software capabilities, allowing the company to offer managed GPU services and orchestration. The analysts noted that this acquisition is a key component in IREN's transition from providing bare-metal infrastructure to becoming a vertically integrated cloud operator.
Bernstein said IREN is expected to utilize capacity across British Columbia and Childress, Texas, as AI cloud deployments expand under existing Microsoft and NVIDIA contracts, with total AI cloud ARR targeted at $3.7 billion by CY26E.
Reiterating an "Outperform" rating on IREN, the analysts noted, "The datacenter opportunity is enormous, and still early, with material upside still possible."
Gautam Chhugani maintains long positions in various cryptocurrencies.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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