IREN Stock Gets Fresh Bull Case: Jefferies Sees AI Pivot Unlocking $3.1B In Annual Revenue

• Once known primarily as a bitcoin miner, IREN is repositioning itself as an AI data center operator.
• Jefferies sees the transition driving substantial long-term value and initiated coverage with a ‘Buy’ rating and a $79 price target. 
• Earlier this month, IREN signed a transmission connection agreement for its first data center project in Australia.

Shares of IREN (IREN) rose nearly 4% in premarket trading on Thursday after Jefferies initiated coverage of the AI infrastructure and bitcoin mining company with a ‘Buy’ rating and a $79 price target. The firm believes that IREN’s AI pivot will unlock long-term value for shareholders.

According to Fly, Jefferies analyst Jonathan Petersen highlighted that IREN’s massive 6 GW powered land bank and flexible data center ownership give it a “unique” edge. 

He also noted that contracts with Microsoft (MSFT) and Nvidia (NVDA) could support roughly $3.1 billion in annual recurring revenue, while ownership of both land and data center assets provides flexibility to serve customers ranging from powered-shell tenants to full-scale GPU cloud deployments. 

The Billion-Dollar Opportunity

The company’s pivot away from pure-play crypto mining into AI is anchored by two massive milestones: a landmark agreement with Microsoft signed in November 2025, which includes a 200-megawatt lease at its Childress facility and a five-year contract worth an estimated $9.7 billion tied to Nvidia's GB300 GPU capacity. 

Jefferies also highlighted that the financing structure of the Microsoft deal allows IREN to recover its roughly $8.8 billion investment during the contract period while generating unlevered internal rates of return exceeding 20%.

In May, the company announced a separate $3.4 billion AI cloud contract with Nvidia, further cementing itself as a credible play. Competitors in this space include AI cloud providers such as CoreWeave and Nebius. 

Earlier this month, IREN signed a transmission connection agreement for an 800-megawatt data center campus in Bundey, welcoming its first data center project in Australia. IREN expects the project to be operational by 2028. 

Retail Investors Remain Divided

The analyst upgrade comes amid mixed sentiment among retail traders. Data from Stocktwits showed sentiment on IREN shifted to "bearish" from "bullish" over the past week, even as message volume jumped 37% over the last 24 hours.

Some retail traders expressed frustration over a recent lull in announcements, with one noting: "$IREN another day with no new contracts... while nbis investors keep smiling... I believe they are being too picky looking for that perfect revenue boost contract."

However, a few others feel that the market may be underestimating management's strategy. One bullish user suggested that with AI compute demand soaring and power capacity becoming incredibly scarce, IREN holds all the cards. Delaying contracts could allow them to secure more attractive opportunities. “Trust in management. We know they deliver; they've shown us over the years. Investing in IREN is a game of patience, and if you don't have it, feel free to jump ship.”

IREN Stock: Wall Street Watch

Wall Street remains broadly positive on IREN stock. According to Koyfin data, the average 12-month analyst price target stands at $81.07, implying roughly 40% upside potential. Among 15 analysts covering the company, 10 rate the shares ‘Buy’, three recommend ‘Hold’, and two maintain ‘Strong Sell’ ratings.

IREN shares have gained nearly 54% year to date and 492% over the past year, making it among the closely watched AI infrastructure-linked stocks.

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