JPMorgan sees 48% upside for IREN after Nvidia AI cloud deal

The company, which shifted from Bitcoin mining into data center operations, has struggled in recent months as investors weigh the cost of its AI infrastructure buildout.

JPMorgan has upgraded IREN Limited (IREN) to overweight from underweight and lifted its price target to $65 from $46, pointing to 48% potential upside.

In a Monday note to clients, analyst Richard Choe said IREN is gaining momentum as a top-tier neocloud provider, with its Nvidia partnership and stronger customer demand supporting its outlook.

Shares of IREN have dropped nearly 27% over the past three months amid concerns about the company’s capital spending on AI infrastructure. JPMorgan expects those concerns to ease following IREN’s five-year AI cloud agreement with Nvidia, announced in May and valued at more than $3 billion.

The bank said IREN’s neocloud contracts are now fetching $15 to $20 per watt or higher, up from a previous range of $10 to $15 per watt.

IREN edged lower in early trading Monday, with shares hovering around $43 at press time, per Yahoo Finance.

Higher pricing could make IREN’s planned expansion more attractive despite its plans to spend $25 billion to $30 billion on capital expenditures in fiscal 2027.

JPMorgan expects roughly 0.5 gigawatts of new capacity could be contracted at prices well above its previous $12 to $15 per watt range, with deals above $15 per watt potentially boosting financial results.

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