JPMorgan Double-Upgrades AI Infrastructure Firm IREN After Landmark Nvidia Partnership

According to JPMorgan, IREN is poised to rebound following its recent agreement with Nvidia. The investment bank issued a double upgrade for the AI infrastructure company, moving its rating from underweight to overweight. Additionally, JPMorgan raised its price target from $46 to $65, suggesting a 48% upside from the previous Friday’s close.

Analyst Richard Choe stated in a Monday client note, “We see IREN establishing itself as a top-tier neocloud provider, backed by its strategic partnership with NVIDIA. The company has gained momentum in signing customers and industry pricing has moved up substantially.”

Originally a bitcoin miner, IREN transitioned into a data center operator and has worked to improve its balance sheet in recent years. However, the stock declined nearly 27% over the past three months, primarily due to investor skepticism regarding the company’s substantial capital expenditures for AI infrastructure.

Despite the recent downturn, JPMorgan anticipates a positive shift in the company’s fortunes. In May, IREN announced a five-year AI cloud deal with Nvidia valued at over $3 billion, a move the bank believes will drive shares higher. JPMorgan notes that IREN’s neocloud contracts are now fetching $15 to $20 per watt or more, depending on duration and GPU generation, a significant increase from the previous $10 to $15 per watt range.

Given these lucrative terms, Choe advised investors to overlook concerns about capital expenditures. “While the company has outlined plans to spend $25-30 billion in capex in FY27, along with substantial increases in operating expenses, we believe the company’s approximately 0.5 GW expansion in 2027 could be signed at materially higher prices than past deals in the $12-15/W range,” Choe wrote. “Any contracts above $15/W would be highly accretive to financials.”

JPMorgan’s assessment aligns with broader Wall Street sentiment. LSEG data indicates that of the 17 analysts covering IREN, 14 maintain a buy or strong buy rating on the stock.

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