IREN Doubles Down on AI Cloud Pivot as Bernstein Cuts Target but Keeps Top Pick Rating

IREN remained Bernstein’s top AI-focused Bitcoin miner even after the broker cut its price target to US$100 (AU$144), as analysts pointed to the company’s Microsoft-backed GPU expansion and US$3.7 billion (AU$5.33 billion) revenue target as the centre of its post-mining story.

According to a report from DLnews, Bernstein lowered the target from US$125 (AU$180) while keeping IREN as its preferred name among miners pivoting into AI infrastructure. 

The note placed IREN at US$50.64 (AU$72.92), below a 52-week high of US$76.87 (AU$110.69), but still up 674% over the prior year.

Bernstein’s case rests on contracted and planned GPU capacity rather than Bitcoin mining alone. The broker said IREN had contracted 150,000 GPUs capable of supporting US$3.7 billion (AU$5.33 billion) in annual recurring revenue at full deployment by the first quarter of calendar 2027.

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Microsoft and IREN’s AI Shift

IREN’s AI cloud shift accelerated in November when the company signed a five-year GPU cloud services contract with Microsoft worth approximately US$9.7 billion (AU$13.97 billion), including a 20% prepayment. IREN said the agreement gives Microsoft access to NVIDIA GB300 GPUs deployed in phases through 2026 at its 750MW Childress, Texas campus.

The Microsoft deployment is tied to new liquid-cooled data centres expected to support 200MW of critical IT load. IREN also signed a Dell Technologies purchase agreement for GPUs and ancillary equipment worth approximately US$5.8 billion (AU$8.35 billion).

IREN co-founder and co-CEO Daniel Roberts stated that the Microsoft deal validated the company’s vertically integrated AI Cloud platform. 

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