Iren (IREN) Stock Surges on Jefferies Buy Rating: AI Infrastructure Play Gains Momentum

TLDR

• Jefferies launched coverage of Iren (IREN) with a Buy recommendation and $79 price objective; shares were hovering near $58.11.
• The stock rallied approximately 5% during premarket hours Thursday after the bullish analyst report.
• Analysts emphasized IREN’s approximately 6 gigawatt land portfolio and fully integrated GPU cloud infrastructure.
• The firm has secured a five-year, $9.7 billion agreement with Microsoft and a $3.4 billion Nvidia AI cloud partnership, aiming for $3.1 billion in yearly recurring revenue.
• Revenue at IREN surged 105% in the trailing twelve-month period as the business shifted from cryptocurrency mining operations to AI infrastructure services.

Shares of Iren (IREN) gained approximately 5% during Thursday’s premarket session following Jefferies’ initiation of coverage featuring a Buy recommendation and a price objective of $79. Trading around $58.11 when the coverage began, the target represents potential upside of roughly 36%.

IREN Limited, IREN

Jefferies analyst Jonathan Petersen spearheaded the coverage launch, emphasizing IREN’s standing as a fully integrated AI cloud infrastructure company backed by an extensive powered land portfolio spanning approximately 6 gigawatts.

The investment firm underscored IREN’s strategic partnerships with Microsoft and Nvidia as fundamental pillars supporting the bullish thesis. Combined, these agreements are projected to generate $3.1 billion in recurring annual revenue.

The Microsoft partnership encompasses a five-year arrangement valued at $9.7 billion for Nvidia GB300 GPU infrastructure, centered at IREN’s 200 MW Childress location. The deal structure features a $1.9 billion advance payment alongside $3.65 billion in GPU financing carrying approximately 6% interest.

According to Jefferies, this framework enables IREN to recover its $8.8 billion capital outlay during the contract period, delivering unlevered internal rates of return above 20%.

Additionally, IREN maintains a distinct $3.4 billion AI cloud partnership with Nvidia. Jefferies noted these strategic relationships position IREN alongside industry players like CoreWeave (CRWV) and Nebius (NBIS) in the competitive landscape.

Transformation From Cryptocurrency Mining to AI Cloud Services

IREN originally operated predominantly as a Bitcoin mining operation. The organization has successfully transitioned into a vertically integrated AI cloud infrastructure provider, a transformation Jefferies characterized as a “compelling strategic pivot.”

Revenue climbed 105% during the trailing twelve months, demonstrating the velocity of this operational shift.

Controlling its own real estate and data center facilities provides IREN with operational agility to accommodate diverse customer requirements — ranging from powered shell environments to comprehensive GPU cloud implementations, according to Jefferies.

Geographic Growth Into European and Australian Markets

Beyond its current operations in the United States, IREN recently finalized the purchase of Ingenostrum, S.L., operating as Nostrum Group, a Spanish AI data center developer. This transaction delivers approximately 490 megawatts of secured, grid-connected capacity and represents IREN’s inaugural expansion into Europe.

IREN has also executed a transmission connection agreement for a projected 800 MW data center facility in Bundey, South Australia — anticipated to rank among the largest data center installations across the Asia-Pacific geography.

After the Australian development announcement, B. Riley elevated its price target on IREN to $96 while maintaining a Buy rating. Macquarie reaffirmed an Outperform stance with a $90 price objective.

Needham has adopted a more conservative perspective, reducing its financial estimates for IREN based on expectations of a slower AI cloud revenue acceleration extending through calendar year 2026 and diminished forecasts for Bitcoin-related contributions.

The stock has delivered approximately 493% returns over the preceding twelve-month period.