Shares in IREN Limited (IREN) dropped about 2% on Wednesday morning. This came after Bernstein released a note showing that IREN’s neocloud rivals CoreWeave (CRWV) and Nebius (NBIS) make more revenue per megawatt of contracted capacity.
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Two ETFs to trade IREN long or short: IREX & IREZHow Much Revenue Does IREN Make Per Megawatt?
According to Bernstein analyst Gautam Chhugani, IREN made $10.4 million — on average, between fiscal 2024 and 2025 — from each megawatt used to actually supply power to its servers (revenue per megawatt of IT workload). This positions the Australian AI cloud company closer to CoreWeave and Nebius, Chhugani noted.
Despite this, the analyst reaffirmed his Buy rating on IREN. He also kept his $100 price target, which suggests approximately 81% upside potential in the months ahead.
“IREN’s position is contingent on timely delivery to hyperscale clients and further buildout of their 5.8 GW owned global power portfolio,” Chhugani noted.
Who Is Gautam Chhugani?
Chhugani is a five-star analyst who ranks in the top 5% of the more than 12,000 Wall Street analysts tracked on TipRanks, placing 449th.
While the analyst currently has a 48% success rate, he boasts an average return of 34.40%. He is even more successful with his IREN ratings.
On IREN stock, Chhugani has a 76% success rate and has generated an average return of 130.29% for investors from his ratings over the last 12 months, as the image below shows.
How Much Revenue Do CoreWeave and Nebius Make?
According to Chhugani, CoreWeave generated about $20.8 million of revenue per megawatt on average between fiscal 2024 and 2025. This compares to $8.4 million for Nebius during the same period.
The analyst revealed the numbers while comparing the business models of AI cloud companies. He noted that neocloud companies such as CoreWeave, Nebius, and IREN make more revenue per megawatt from providing hyperscalers with access to massive GPUs (graphics processing units) for AI training and inference.
On the other hand, firms such as Digital Realty (DLR), Equinix (EQIX), and American Tower’s (AMT) CoreSite follow a co-location model where they sell power capacity on long-term leases. They tend to serve a broader customer set, including retail clients. As a result, they generate lower revenue per megawatt.
Despite these factors, Cchugani noted that his team prefers the co-location model to the GPU model.
Which AI Cloud Stock Is the Best Buy?
Of the AI cloud firms mentioned in this article, IREN (IREN) currently offers the biggest upside of 43%, according to TipRanks’ Stock Comparison tool.
This rating comes with a Moderate Buy consensus rating and an average price target of $75.
