Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - Bernstein SocGen Group has significantly raised its price target on Iren Ltd. (NASDAQ:IREN) to $75.00 from $20.00 while maintaining an Outperform rating, citing the company’s ambitious expansion into AI cloud services. According to InvestingPro data, IREN has achieved an impressive 325% return year-to-date, with the stock currently trading near its 52-week high at $47.10.
The research firm highlighted Iren’s differentiated approach among Bitcoin miners, noting that while competitors pursue capital-light co-location deals with AI cloud partners, Iren is building its own AI cloud vertical with substantial capital expenditure.
Bernstein acknowledged it had previously underestimated Iren’s capability to develop its AI cloud business due to concerns about high capital intensity, unproven data center execution capabilities, and competition with established AI neocloud leaders.
The firm’s revised outlook follows Iren’s guidance for an exponential scale-up in its AI cloud business to a $500 million annual recurring revenue by Q1 2026 with 23,300 GPUs (mostly Blackwell), compared to approximately $14 million ARR in Q1 2025 using Hopper GPUs.
Iren stock has gained approximately 300% year-to-date as investors respond to the company’s strategic pivot toward artificial intelligence infrastructure.
In other recent news, Iris Energy has announced a significant expansion of its AI Cloud capacity, doubling its GPU count to 23,000 units. This expansion involved purchasing an additional 12,400 GPUs, including models from NVIDIA and AMD, at a cost of approximately $674 million. The company is targeting more than $500 million in AI Cloud annualized run-rate revenue by the first quarter of 2026. Analyst firms have responded to these developments, with Roth/MKM raising their price target for Iris Energy to $82 from $35, citing growth in AI Cloud capabilities. Canaccord Genuity also increased its price target to $42, highlighting the strategic value of Iris Energy’s data center operations. In leadership changes, Iris Energy appointed Anthony Lewis as the new Chief Financial Officer, following his previous role as Chief Capital Officer. These updates reflect Iris Energy’s strategic initiatives and its focus on expanding its technological and financial infrastructure.
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