The $3.4 Billion Reason Nvidia Drove IREN Stock Higher Today
Iren Limited (IREN) stock closed meaningfully higher on Friday after the data center operator announced a transformative $3.4 billion artificial intelligence (AI) cloud infrastructure partnership with Nvidia (NVDA).
Following this rally, IREN sits handily above its key moving averages (MAs), with an RSI in the late 60s indicating intense buying pressure.
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Versus their year-to-date low in late March, IREN shares are now up a whopping 90%.
Does the Nvidia Deal Warrant Buying IREN Stock
IREN has signed a five-year agreement that grants Nvidia access to its cloud services — a deal that is expected to generate $3.4 billion in revenue.
Meanwhile, the AI darling has agreed to take a direct stake in IREN’s success by investing up to $2.1 billion through an option to purchase 30 million of its shares at $70 each.
That price target represents a more than 20% premium on IREN shares’ previous close.
A vote of confidence from the world’s most valuable chipmaker validates IREN’s pivot from a Bitcoin (BTCUSD) miner to a premier AI data center play.
By combining Nvidia’s Blackwell architecture with IREN’s massive power pipeline, the duo aims to deploy 5 gigawatts of foundational artificial intelligence infrastructure.
Analyst Raises Price Target on IREN Shares
The Nvidia news made Cantor Fitzgerald analyst Brett Knoblauch reiterate his “Overweight” rating on IREN stock and raise the price target to $77, indicating potential upside of another 25% from here.
Beyond the new partnership, Knoblauch highlighted the company’s recent acquisition of 490 megawatts of capacity in Spain and its path to having 1.2 gigawatts commissioned by late 2027 for his bullish view.
In his research note, the Cantor Fitzgerald analyst argued IREN remains significantly undervalued relative to its 171% revenue growth and its positioning as a top-tier picks-and-shovels play for the AI revolution.
And the derivatives market seems to agree. The upper price on options contracts expiring Aug. 21 sits at $83 currently, reinforcing that there may still be time to build a position in IREN.
Wall Street Remains Bullish on IREN
Other Wall Street analysts are in the same league as Brett Knoblauch on IREN shares.