Iris Energy stock price target raised to $105 from $50 at Compass Point

Investing.com - Compass Point has more than doubled its price target on Iris Energy (NASDAQ:IREN) to $105.00 from $50.00 while maintaining a Buy rating following the company’s fiscal first-quarter 2026 results.

The cryptocurrency mining and AI cloud services company reported revenue of $240.3 million for the quarter, up from $187.3 million in the previous quarter. Bitcoin mining contributed $232.9 million while AI cloud services generated $7.3 million.

Compass Point highlighted that Iris Energy now has the necessary components—"power, partners, capital"—to scale its AI cloud business rapidly. Beyond its recently announced Microsoft (NASDAQ:MSFT) partnership, the company confirmed three additional customers: Together.ai, FluidStack, and Fireworks AI.

At its Childress, Texas facility, Iris Energy is accelerating development of four phases with 200MW IT load capacity to accommodate Microsoft’s GPU deliveries through calendar 2026. Each phase is engineered to support approximately 19,000 GPUs, with the entire project expected to house 76,000 GPUs across all four phases.

The research firm noted that customer interest exceeds the initial 200MW capacity from multiple potential clients, and that GPU-as-a-Service offers higher, faster-payback equity returns compared to typical colocation deals, benefiting from prepayments and leverage on contracted cash flows.

In other recent news, IREN Ltd reported its earnings for the first quarter of fiscal year 2025, revealing a significant increase in revenue. The company also noted strategic advancements in its AI cloud services. Despite these positive developments, the earnings report did not indicate a clear earnings beat, leading to concerns among investors about rising operating expenses. These concerns were reflected in the company’s stock performance, although specific stock price movements are not the focus here. The report highlights the company’s focus on expanding its AI capabilities, which is a strategic area for growth. Analysts have not yet provided an upgrade or downgrade for IREN Ltd following this earnings release. Investors are closely monitoring the company’s efforts to manage expenses while pursuing technological advancements. These recent developments are part of IREN Ltd’s ongoing strategy to enhance its market position.

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