IREN wins massive price target raise at Roth

Roth Capital Markets analyst Darren Aftahi on Sept. 23 more than doubled his price target on IREN Limited (IREN Stock Quote, Chart, News, Analysts, Financials NASDAQ:IREN) to $82 from $35, reiterating a “Buy” rating after the company again expanded its AI Cloud infrastructure.

IREN disclosed the purchase of roughly 12,400 additional GPUs, spanning Nvidia’s B300s and B200s as well as AMD’s MI350Xs, at a total cost of about $674-million. The deal doubles IREN’s GPU fleet to approximately 23,000, positioning it to achieve over US$500-million in annual recurring revenue from AI Cloud by the first quarter of 2026.

Aftahi said the move effectively completes the conversion of the company’s Prince George, B.C., facility into a dedicated AI Cloud site.

“We believe multiple expansion is likely as execution improves and IREN reaches scale beyond 100,000 GPUs,” he said, noting the raised target reflects both higher AI Cloud visibility and a discounted sum-of-the-parts approach to future revenue streams.

Founded in Australia, IREN operates more than 300 megawatts of energized data centers across the U.S. and Canada, with a long-term development pipeline exceeding three gigawatts. The company generates revenue through Bitcoin mining and hosting services for AI Cloud, all powered by renewable energy.

Aftahi updated his model to include the expanded GPU buildout, projecting total capacity of about 112,000 GPUs by the end of 2026 as additional B.C. sites are converted to AI Cloud.

He forecasts annual recurring revenue of US$2.5-billion at 99% uptime, with gross margins in the mid-90s and adjusted EBIT margins in the high-30s range. By the fourth quarter of fiscal 2026, he expects AI Cloud will represent more than half of IREN’s revenue, rising to about 80% by fiscal 2027.

On that basis, the analyst lifted his fiscal 2027 forecasts by US$870-million in revenue and US$785-million in Adjusted EBITDA. He values the AI Cloud business at a discounted 4 times sales, below peer multiples, while assigning a smaller valuation to the Bitcoin mining operation, which is expected to shrink to 40 exahash following site conversions.

Aftahi now projects IREN will generate Adjusted EBITDA of US$611.8-million on US$1.09-billion of revenue in fiscal 2026, improving to US$1.82-billion on US$2.46-billion in revenue in fiscal 2027.

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