Bernstein Sets $100 IREN Target After $3.4B NVIDIA AI Deal

Analysts at Bernstein have issued a $100 price target for IREN following the announcement of a long-term strategic partnership with NVIDIA, according to a note to clients on Friday. The partnership includes a $3.4 billion AI cloud contract and an equity option allowing NVIDIA to invest $2.1 billion at $70 per share.

Stock Price and Upside Potential

IREN shares closed at $56.85 on May 7, according to The Block's IREN price page, with Bernstein's price target implying approximately 76% upside from that level.

Strategic Partnership Rationale

Bernstein analysts, led by Gautam Chhugani, characterized the development as a potentially significant technological and capital alignment between the two firms. The analysts noted that by securing NVIDIA as a strategic partner for its 2GW Sweetwater flagship site, IREN obtains both technological backing for advanced AI factory architecture and a high degree of confidence regarding GPU supply as hardware transitions to next-generation platforms.

According to the analysts, while IREN must still secure an anchor client and broader enterprise customers for the Sweetwater site, the company has improved its competitive and technological positioning given the scale of the 2GW project.

Existing Contracts and Deployments

Bernstein noted that IREN remains on schedule to execute the 200MW Horizon data center delivery for Microsoft, with the first 50MW facility due in Q3. The analysts stated that IREN is expected to utilize capacity across British Columbia and Childress, Texas, as AI cloud deployments expand under existing Microsoft and NVIDIA contracts.

Mirantis Acquisition and Software Capabilities

The report highlighted how the $625 million acquisition of Mirantis enhances IREN's software capabilities, allowing the company to offer managed GPU services and orchestration. The analysts noted that this acquisition is a key component in IREN's transition from providing bare-metal infrastructure to becoming a vertically integrated cloud operator.

Revenue Projections

Bernstein stated that total AI cloud ARR is targeted at $3.7 billion by CY26E.

Rating and Outlook

Reiterating an "Outperform" rating on IREN, the analysts noted, "The datacenter opportunity is enormous, and still early, with material upside still possible."