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Iren turns to AI neocloud as Microsoft accepts Horizon 1 in Texas
Bernstein reiterates an Outperform rating and a $100 target for Iren, arguing its owned-GPU model can earn $10 million to $20 million per MW versus about $2 million to $2.5 million under colocation.
Iren Ltd. is pitching its shift from Bitcoin mining to an AI neocloud business, using its power infrastructure to supply AI cloud compute to customers such as NVIDIA and Microsoft, according to coverage from Yahoo Finance.
On Aug. 13, Bernstein SocGen Group analyst Gautam Chhugani reiterated an Outperform rating on Iren and kept a $100 price target, which the article says implies about 120% upside from current levels.
The bullish view emphasizes that Iren is not pursuing a capex-light colocation approach where customers install their own GPUs, instead investing to build its own cloud infrastructure and sell computing capacity directly, which it says captures more revenue per MW.
The thesis gained support in the article from Microsoft’s formal acceptance of the Horizon 1 data center handoff in Childress, Texas, described as a 50MW critical IT load AI cloud deployment using direct-to-chip liquid cooling and NVIDIA GB300 NVL72 systems.
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