Iren (IREN) Stock Surges on $100 Price Target After Major Nvidia and Microsoft Contracts

Key Takeaways

• Bernstein initiated a Wall Street-leading $100 price target on IREN, suggesting approximately 69% potential upside
• The investment firm described Iren’s $5.5 billion Nvidia partnership as “the Nvidia blessing” while maintaining its Buy recommendation
• The company’s 2 GW Sweetwater facility is set to serve as the primary showcase for Nvidia’s DSX-AI data center architecture
• Analysts at Bernstein project Iren will successfully complete its 200 MW Horizon facility tied to the $9.7 billion Microsoft agreement
• The company revealed intentions to develop an 800 MW data center complex in South Australia, focusing on Asia-Pacific AI infrastructure needs

Shares of Iren experienced approximately 2% gains on Tuesday, following Monday’s impressive 9% surge, after Bernstein analyst released an optimistic research note establishing a new Street-high price objective of $100 per share.

IREN Limited, IREN

The upward revision came from analyst Gautam Chhugani, who maintained his Buy recommendation on IREN while highlighting what he termed “the Nvidia blessing” — a comprehensive $5.5 billion partnership agreement between Iren and Nvidia.

Chhugani holds a position within the top 5% of Wall Street analysts on TipRanks, demonstrating a 46% accuracy rate alongside an impressive 31.30% average return. His track record on IREN is particularly strong, boasting a 76% success rate with approximately 139% average returns during the previous twelve months.

The $100 price objective indicates around 69% appreciation potential from present trading levels and stands as the Street’s most optimistic forecast since Compass Point’s $105 projection in November 2025.

The Nvidia partnership encompasses two significant components. First, a $3.4 billion arrangement where Nvidia will utilize 60 MW of Iren’s cloud computing infrastructure for its proprietary AI operations. Second, Iren’s 2 GW Sweetwater facility will serve as the premier showcase site for Nvidia’s DSX-AI data center design framework.

Chhugani acknowledged that while Iren must still attract anchor tenants and enterprise customers to Sweetwater, the Nvidia collaboration substantially enhances both its competitive standing and technological capabilities.

Regarding the Microsoft partnership, Bernstein expresses confidence that Iren will successfully deliver its 200 MW Horizon data center facility as part of the $9.7 billion contract. Initial operations are projected to commence during Q3 2026, with full completion anticipated later that year.

South Australia Expansion Targets APAC Growth

Iren has additionally unveiled strategies for an 800 MW data center facility in Bundey, South Australia — marking the company’s inaugural announced development in the Australian market. Power infrastructure activation is scheduled to begin in 2028.

The Bundey location features undersea fiber optic connections to Singapore, Indonesia, South Korea, and Japan, strategically positioning it as a critical infrastructure node for Asia-Pacific artificial intelligence workload demand.

The development is projected to generate more than 500 construction positions and over 200 permanent skilled employment opportunities upon reaching full operational status.

Market Position and Valuation Concerns

Iren’s shares have appreciated 56.2% year-to-date, significantly outperforming industry competitors. However, valuation metrics appear elevated — IREN currently trades at a forward price-to-sales multiple of 8.37x compared to the sector average of 2.81x, resulting in a Zacks Value Score of F and a Zacks Rank of #4 (Sell).

Rival companies are aggressively expanding as well. Applied Digital executed a 15-year, 300 MW lease agreement in May 2026, elevating its total AI Factory contracted revenue pipeline to approximately $31 billion. TeraWulf completed the acquisition of Kentucky’s Muskie Data Campus during the same period, growing its development pipeline beyond 1 GW.

Among Wall Street analysts, the consensus rating on IREN stands at Moderate Buy — comprising six Buy ratings, three Hold ratings, and one Sell rating issued within the past three months. The average analyst price target of $74.56 suggests approximately 24% upside from current price levels, notably lower than Bernstein’s aggressive $100 projection.