IREN Stock: Why One Analyst Calls It His Best AI Bet for 2026

TLDR

• IREN stock received a “Moderate Buy” consensus from 19 analysts with an average price target of $67.64, despite recent quarterly results missing EPS estimates at ($0.34) versus $0.14 expected.
• The company posted $240.3 million in Q1 fiscal 2026 revenue, representing a 355% year-over-year increase as it transitions from Bitcoin mining to AI infrastructure services.
• IREN secured a $9.7 billion five-year agreement with Microsoft in November 2025 to deploy NVIDIA GB300 GPUs at its Childress, Texas facility, generating approximately $1.94 billion in annual revenue.
• Bernstein analyst Gautam Chhugani named IREN as his top AI pick for 2026, with the stock currently trading at $46.03, down roughly 30% from its 52-week high of $76.87.
• The company plans to energize its Sweetwater facility in April 2026, adding 1.4 gigawatts of power capacity and targeting deployment of 140,000 GPUs by year-end 2026.

IREN Limited closed Friday at $46.03, up 0.7% in a session that saw the stock test both $45.52 and nearly $50. The company sits at the intersection of two hot markets: Bitcoin mining and AI data centers.

IREN Limited, IREN

Nineteen analysts currently cover IREN with a “Moderate Buy” consensus. Twelve rate it a buy, five have hold ratings, and two recommend selling. The average 12-month price target sits at $67.64, suggesting upside from current levels.

Recent analyst activity shows growing interest. BTIG Research lifted its price target from $32 to $75 in October. Roth Capital set a $94 target in November. Sanford C. Bernstein maintained an “outperform” rating with a $75 target in September.

The most recent vote of confidence came Friday when Bernstein analyst Gautam Chhugani called IREN his “top AI pick” for 2026. He urged investors to “start 2026 by buying stocks on the dip” and said crypto markets “have bottomed.”

The Revenue Surge and Earnings Miss

IREN reported Q1 fiscal 2026 results in November that showed the company’s transformation in action. Revenue hit $240.3 million, up 355% year-over-year. That growth reflects the shift from pure Bitcoin mining to AI infrastructure services.

The earnings picture was less rosy. IREN posted an EPS loss of ($0.34), missing analyst expectations of $0.14 by 48 cents. Revenue also came in slightly below the $244.6 million consensus.

The company showed an adjusted EBITDA of $92 million for the quarter. Net margin reached 86.96%, though return on equity was negative at 3.60%.

Analysts forecast IREN will post 0.43 EPS for the current fiscal year. The stock trades at a price-to-earnings ratio of 23.73 with a market cap of $13.05 billion.

IREN’s volatility is reflected in its beta of 4.25. The stock has traded between $5.13 and $76.87 over the past 52 weeks. Current price sits about 30% below that peak.

The Microsoft Deal Changes Everything

In November 2025, IREN announced a $9.7 billion five-year agreement with Microsoft. The deal will generate approximately $1.94 billion in annual revenue with projected EBITDA margins around 85%.

The partnership involves deploying NVIDIA GB300 graphics processing units at IREN’s Childress, Texas campus. Co-CEO Daniel Roberts called it a “milestone partnership” for the company.

This contract provides stable, predictable revenue compared to the cyclical nature of cryptocurrency mining. It validates IREN’s technical capabilities in the eyes of Wall Street.

IREN raised $1 billion through a convertible note offering in late 2025. That capital is being deployed to acquire next-generation hardware and develop infrastructure for the Microsoft project and future clients.

The Sweetwater facility represents the next major milestone. Energization is scheduled for April 2026, adding 1.4 gigawatts of power capacity.

Management aims to deploy 140,000 GPUs by the end of 2026. IREN now has approximately 3 gigawatts of secured power capacity across its facilities.

Institutional investors hold 41.08% of IREN shares. Value Aligned Research Advisors owns 3,873,337 shares worth $181.8 million after increasing its position by 18.6% in Q3. Dynamic Advisor Solutions grew its holdings by 55.8% in Q4.

The stock faces near-term pressure from macro factors. Traders reduced expectations for Federal Reserve rate cuts after Friday’s jobs data. December CPI data arrives January 13, with the Fed’s next meeting scheduled for January 27-28.

Bitcoin traded near $90,600 heading into the weekend. Mining peers showed mixed performance Friday: Marathon Digital fell 2.0%, Riot Platforms rose 1.3%, and CleanSpark dropped 3.1%.

IREN filed a Form S-8 earlier in January to register 17.5 million ordinary shares for its 2025 Omnibus Incentive Plan. The company’s next earnings release is expected around February 11.

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