BERNSTEIN SETS $100 PRICE TARGET FOR IREN FOLLOWING LANDMARK NVIDIA DEAL

Investment firm Bernstein has issued a bullish $100 price target for IREN (formerly Iris Energy), implying a 76% upside. This valuation follows a transformative $3.4 billion AI cloud agreement with NVIDIA, signaling IREN’s decisive pivot from Bitcoin mining to a high-performance AI infrastructure powerhouse.

STRATEGIC PIVOT TO AI CLOUD SERVICES

The partnership centers on IREN providing managed GPU cloud services using NVIDIA’s next-generation Blackwell systems.

Infrastructure Depth: NVIDIA is retrofitting 60MW of IREN’s air-cooled data center capacity in Childress, Texas, for its own internal AI research and workloads.

Flagship Expansion: IREN’s 2-gigawatt Sweetwater site will serve as the primary hub for NVIDIA’s DSX-AI factory design architecture, securing a long-term role in the AI supply chain.

Supply Assurance: This deal guarantees IREN early access to future GPU generations beyond the current GB300 series, a critical advantage in a supply-constrained market.

MULTI-BILLION DOLLAR EQUITY & CAPITAL INJECTION

Beyond the service contract, the deal includes a significant financial commitment that bolsters IREN’s balance sheet:

Equity Investment Option: NVIDIA has secured the right to invest up to $2.1 billion in IREN equity over the next five years, potentially purchasing 30 million shares at $70 each.

Strong Liquidity: IREN currently holds $2.6 billion in cash, which, combined with customer prepayments and GPU financing, provides the capital needed for its aggressive 2026–2027 build-out.

INSTITUTIONAL OUTLOOK: WHY THE $100 TARGET?

Bernstein’s "Outperform" rating reflects the market’s realization that power-secured data centers are now the most valuable assets in the AI race.