IREN Ltd. (IREN) is no longer just a Bitcoin miner but a key contender in the AI infrastructure race. This led Bernstein SocGen Group analyst Gautam Chhugani to raise his price target on IREN stock to $75 from $20, citing an 80% upside and maintaining a Buy rating. Following the news, shares of the company rose over 15% Wednesday.
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The stock is already up nearly 300% year-to-date, and the analyst’s latest move indicates that he sees room for more run.
It must be mentioned that the rating comes after IREN bought GPUs worth $670 million from Nvidia (NVDA) and AMD (AMD) to grow its AI Cloud.
From Mining to AI Cloud
While many crypto miners have opted for “capital-light” partnerships with AI cloud providers like CoreWeave (CRWV), Chhugani noted IREN is taking a different route. It is building its own AI cloud vertical, which includes investment in infrastructure, GPUs, and data center capabilities.
Also, the five-star analyst said he initially doubted IREN’s ability to scale due to high costs, GPU needs, and tough competition from established AI players. However, Chhugani now believes, “IREN has made adequate progress for us to take the AI cloud business seriously, and build an investment case for re-rating.”
Importantly, IREN is guiding for a massive jump in its AI cloud business. It projects $500 million in annual recurring revenue (ARR) by Q1 2026, powered by 23,300 GPUs, mostly Nvidia’s next-gen Blackwell chips. This reflects a huge growth from the $14 million ARR in Q1 2025.
Is IREN a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IREN stock based on seven Buys and four Holds assigned in the past three months. Further, the average IREN price target of $36.50 per share implies 24.2% downside risk.
