Shares of IREN, the Bitcoin mining company turned AI infrastructure player, are up more than 500% year to date, but that could be just the beginning, according to one Wall Street bull.
Following the company’s third-quarter earnings report last week and its five-year, $9.7 billion deal with Microsoft to deliver 200 megawatts of AI computing at its Childress, Texas, site, Cantor Fitzgerald’s Brett Knoblach left his already optimistic 2025 targets largely in place, but said IREN could reach $384 by 2028 from $67 currently.
With the deal, Knoblach wrote in a Friday note, IREN joins the ranks of large-scale “neocloud” providers, adding credibility to the company’s ambitions to reach $18.6 billion in annual revenue at its Texas and Canada locations. The company’s updated annual recurring revenue guidance for 2026 increased from $500 million to $3.4 billion following this announcement.
During the recent earnings conference call, Knoblach noted, IREN emphasized its preference for cloud over colocation, noting higher yields, upfront capital support from Microsoft and long-term asset value. Even if GPUs lose their usefulness after five years – a scenario he considers unlikely – the data centers themselves could still generate hundreds of millions of dollars per year through colocation contracts.
Knoblach sees Microsoft’s involvement as a key vote of confidence in IREN’s infrastructure. He also believes that the architecture being built is “scalable” for future generations of GPUs, with rack densities that could support NVIDIA’s Rubin chips or their successors.
While Knoblach cut his short-term price target from $142 to $136 due to weak bitcoin mining revenue, he reiterated an “overweight” rating and called IREN a top pick.
Shares are up 7.6% at $67.12 on Monday, alongside a general rally in stocks and crypto.
