Bernstein reaffirmed a "Buy" rating for IREN Ltd. Analyst Gautam Chhugani maintained a $100 price target. This suggests significant upside from current trading levels. IREN's stock recently experienced a sharp decline. It has faced pressure from a broader tech sell-off. Investor concerns over large equity compensation packages for its founders also contributed to this pressure.
The bullish outlook stems from IREN's strategic pivot. The company is transitioning from exclusively mining Bitcoin to becoming a vertically integrated AI cloud and data center operator. Bernstein's analysis highlights IREN's contracts with major tech firms, including Microsoft and NVIDIA. These contracts are a key driver for future revenue. The analyst notes IREN is smaller in scale compared to some rivals. However, its ownership of its own power and infrastructure provides a competitive advantage.