Roth/MKM raises Iris Energy price target to $82 from $35 on AI Cloud growth

Published 23/09/2025, 16:18
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Investing.com - Roth/MKM has raised its price target on Iris Energy (NASDAQ:IREN) to $82.00 from $35.00 while maintaining a Buy rating on the stock. The company’s stock has shown remarkable momentum, delivering a 486% return over the past six months and currently trading near its 52-week high of $42.93.

The significant price target increase comes as IREN doubled its GPU purchases to approximately 23,000 units, representing an addition of 12,400 GPUs at a cost of about $674 million, according to Roth/MKM’s Tuesday update.

The firm noted that IREN is targeting over $500 million in AI Cloud annual recurring revenue and is likely to fully convert its Prince George facility to AI computing operations.

Roth/MKM’s updated model now assumes IREN will operate approximately 112,000 GPUs by calendar year 2026 and achieve high-30s percentage adjusted EBIT margins, driven by full-stack ownership after converting remaining British Columbia sites to AI Cloud and reducing self-mining operations to about 40 EH/s.

The firm projects AI Cloud will represent more than 50% of IREN’s revenue by fiscal fourth quarter 2026, though it notes the long-term revenue mix remains uncertain.

In other recent news, Iris Energy has announced a significant expansion in its AI Cloud capacity, doubling it to approximately 23,000 GPUs. This expansion involved the purchase of 12,400 additional GPUs, including models from NVIDIA and AMD, at a total cost of about $674 million. The company is now targeting an ambitious annualized run-rate revenue of over $500 million by the first quarter of 2026. In a related development, Canaccord Genuity has raised its price target for Iris Energy to $42, maintaining a Buy rating, due to positive expectations surrounding the company’s data center growth. However, Jones Trading has downgraded Iris Energy to a Hold rating, following a substantial 170% year-to-date gain in its stock price. Additionally, Iris Energy has appointed Anthony Lewis as its new Chief Financial Officer, succeeding Belinda Nucifora. Lewis, who joined the company in 2025, will now oversee the financial operations and strategic planning. These developments highlight the ongoing strategic initiatives and leadership changes at Iris Energy.

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