How the IREN Story Is Changing After Major AI Expansion and Analyst Re-Ratings
IREN’s fair value estimate has just been lifted substantially, rising from $48.58 to $62.75. This sharp revision reflects renewed confidence in the stock’s long-term narrative and comes amid rapidly evolving expectations as the company focuses on its AI cloud expansion and secures strategic industry advantages. Stay tuned to find out how investors can keep ahead of these fast-moving shifts in IREN’s story.
🐂 Bullish Takeaways
Analysts remain broadly optimistic about IREN, with a notable series of sharp price target increases across multiple firms. This reflects heightened confidence in the company’s AI-driven expansion and execution quality.
B. Riley lifted its price target on IREN to $74 from $29, highlighting robust AI-related demand and recent strategic partnerships, such as reported deals with Google and Anthropic, as potential catalysts for further upside.
Roth Capital raised its target to $82 from $35, citing IREN’s insulation from new power rules in British Columbia and competitive positioning due to existing resources and infrastructure. The firm also noted the successful expansion of its AI GPU portfolio.
Cantor Fitzgerald set a new $100 price target, emphasizing IREN’s focus on AI cloud services. The firm’s review compares IREN’s business model favorably to CoreWeave, with confidence that market discounts relative to peers will close as execution continues.
Bernstein increased its target to $75 from $20, noting that IREN is uniquely building its own AI cloud vertical, investing substantial capital and making measurable progress. Bernstein believes this warrants a re-rating.
H.C. Wainwright, BTIG, and Canaccord also substantially raised their targets, referencing factors such as record results, increased access to GPU resources, continued infrastructure buildout, and flexible business models allowing IREN to respond dynamically to evolving demand.
Firms consistently reward IREN’s proactive execution, rapid scaling in AI cloud services, and strategic power positioning. Many flag its ability to maintain high growth momentum as a key driver of valuation gains.
🐻 Bearish Takeaways
JonesResearch downgraded IREN to Hold from Buy after the stock’s significant rally, warning that much of the near-term upside could already be priced in following a 400% surge from April lows and 170% gain year-to-date.
Bears and some cautious neutrals flag risks tied to valuation froth, pressure from capex intensity associated with AI expansion, and concerns about client demand durability. They also highlight the competitive and execution challenges inherent in transitioning to an AI cloud model.
Some analysts note potential erosion of historical supply-side advantages as the market becomes more crowded and evolving business models bring new execution risks.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!
NasdaqGS:IREN Community Fair Values as at Oct 2025
IREN has signed additional multi-year cloud services contracts with leading AI companies, securing customer deals for 11,000 out of 23,000 planned NVIDIA Blackwell GPUs. The company is targeting over $500 million in annualized run-rate revenue by the end of the first quarter of 2026.
The company expanded its AI Cloud capacity to 23,000 GPUs through a recent purchase of 12,400 advanced GPUs, including NVIDIA B300s, B200s, and AMD MI350Xs. The procurement, valued at approximately $674 million, was driven by surging customer demand for AI infrastructure.
Anthony Lewis has been appointed as IREN’s new Chief Financial Officer. He brings experience from Macquarie Group and succeeds Belinda Nucifora, who served as CFO for over three years.
In its July 2025 operating update, IREN reported achieving an average operating hashrate of 45.4 exahashes per second and mining 728 bitcoin.
Fair Value Estimate: Increased substantially from $48.58 to $62.75. This reflects a strong upward revision in IREN’s long-term outlook.
Discount Rate: Declined slightly from 8.08% to 8.08%, indicating marginally lower perceived business risk.
Revenue Growth: Essentially unchanged at approximately 62.74%, signaling stable future growth expectations.
Net Profit Margin: Decreased significantly from 36.22% to 27.18%. This suggests lower anticipated profitability relative to revenue.
Future P/E Ratio: Increased sharply from 26.12x to 44.94x, implying higher anticipated valuation multiples and elevated market expectations.
Narratives are a smarter, more dynamic way to invest. On Simply Wall St, a Narrative lets users tell the story behind a company’s numbers by connecting their perspective on fair value, future revenue, and margins. Narratives link a company’s real-world story with a financial forecast and fair value, helping you decide when to buy or sell by comparing fair value with the current price. Best of all, Narratives update automatically whenever news or results are announced, and are always available on the Community page used by millions of investors.
Eager to see the full story? Read the original IREN narrative here and follow along for:
Key insights on IREN’s AI cloud expansion, vertical integration, and unique market positioning, direct from the latest analysis.
Updates on fair value and earnings forecasts as new information rapidly shifts the outlook.
Actionable signals to help you react early to catalysts, risks, and opportunities before they move the market.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include IREN.
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