JPMorgan Double-Upgrades IREN Limited Following Major AI Infrastructure Partnership
On September 14, JPMorgan analyst Richard Choe upgraded IREN Limited (IREN) from Underweight to Overweight and raised its price target by 41%, citing a transformative partnership with Nvidia. The $5.5 billion agreement includes a five-year contract worth approximately $3.4 billion and an option for Nvidia to invest up to $2.1 billion in conditional shares, signaling strong validation of IREN's AI cloud infrastructure capabilities. IREN has seen significant growth since pivoting from Bitcoin mining to AI services, with FY2026 results showing 8x revenue growth in its AI Cloud Services segment and a raised annualized run-rate (ARR) guidance to $4 billion. The company is also securing high-value contracts across the AI ecosystem, including Microsoft, Cohere, Prometheus, Perplexity, Figure AI, Fal AI, Higgsfield AI, and an undisclosed frontier lab. JPMorgan highlighted IREN's efficient capital structure, with customer prepayments covering 45-55% of GPU costs. The firm noted that AI compute services are now priced higher than previously expected, supporting the upgrade rationale.
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Topics: AI IREN Stock JPMorgan Analyst Action Nvidia Partnership