IREN Stock Sees AI Pivot as Key Driver for Long-Term Value

Jefferies has initiated coverage of IREN (IREN) stock with a 'Buy' rating and a $79 price target, citing the company's pivot towards AI infrastructure as a key driver for long-term value. The firm believes that IREN's massive 6 GW powered land bank and flexible data center ownership provide a unique edge in the market.

Iren is shifting its focus from pure-play crypto mining to AI infrastructure, and this transition has been anchored by two major milestones: a landmark agreement with Microsoft signed in November 2025, which includes a 200-megawatt lease at its Childress facility and a five-year contract worth an estimated $9.7 billion tied to Nvidia's GB300 GPU capacity.

Jefferies also highlighted that the financing structure of the Microsoft deal allows IREN to recover its roughly $8.8 billion investment during the contract period while generating unlevered internal rates of return exceeding 20%. The company announced a separate $3.4 billion AI cloud contract with Nvidia in May, further solidifying its position as a credible player.

IREN's shares have gained nearly 54% year-to-date and 492% over the past year, making it one of the closely watched AI infrastructure-linked stocks. Among 15 analysts covering the company, 10 rate the shares 'Buy', three recommend 'Hold', and two maintain 'Strong Sell' ratings.