You know that feeling when your friend suddenly becomes obsessed with someone new? That’s basically Wall Street right now with IREN stock. And honestly, I get it.
IREN used to be just another Bitcoin mining company – you know, those folks burning through electricity to create digital coins. But then they had what we might call a “glow up.” They pivoted to AI infrastructure and data centers, which is like going from being a gold prospector to owning the land where everyone wants to build their mansions.
**The Microsoft Moment**
Last November, IREN landed a $9.7 billion deal with Microsoft. Yes, billion with a B. Microsoft basically said, “Hey, we need somewhere to put all our fancy AI computers, and your renewable-powered data centers look pretty sweet.” The stock jumped 20% last week alone because, well, when Microsoft comes knocking with that kind of cash, people pay attention.
Two analysts just upgraded IREN big time. HC Wainwright went from “Sell” to “Buy” (talk about a 180!) and slapped an $80 price target on it. That’s a 38% upside from current levels around $58. Meanwhile, Bernstein called it their top AI pick for 2026. When the smart money starts talking like this, it’s worth listening.
**The AI Gold Rush**
Here’s the thing about AI – it’s hungry. Like, really hungry for computing power. And computing power needs data centers, which need massive amounts of electricity. IREN has 3 gigawatts of North American power capacity, which is basically like owning prime real estate in Manhattan during a housing shortage.
The company is targeting $3 billion in annual revenue by fiscal 2026. That’s a pretty ambitious jump from their current $2 billion, but when you’re dealing with AI demand that’s growing faster than a teenager’s appetite, ambitious might just be realistic.
**But Wait, There’s a Catch**
Because there’s always a catch, right? That Microsoft deal isn’t all champagne and caviar. IREN has to invest $5.8 billion in GPUs and equipment over five years, and Microsoft’s only covering about a third upfront. The rest? That’s coming out of IREN’s pocket, likely through debt.
Think of it like this: Microsoft is essentially saying, “We’ll rent your house, but first you need to renovate it to our specifications, and oh, we’ll help with some of the costs.” It’s a great deal if you can pull it off, but if something goes wrong – equipment delays, cost overruns, technical hiccups – things could get messy fast.
The data center business is notoriously low-margin (around 4% for IREN), so there’s not much room for error. One major screw-up could turn this “mega-deal” into a financial headache.
**The Bottom Line**
Ten out of twelve analysts now rate IREN as a Buy or better. The consensus price target sits around $69, suggesting decent upside potential. The AI boom is real, and IREN is positioning itself right in the middle of it with renewable energy advantages that competitors would kill for.
Is it risky? Absolutely. But sometimes the best opportunities come with the biggest question marks. Just don’t bet the farm – this is more of a “calculated gamble with your fun money” situation than a “mortgage the house” play.