Bitcoin News Update: Analysts Say IREN's Shift to AI, Not Its Bitcoin Origins, Drives 500% Stock Growth Potential

IREN Shares Could Jump Nearly 500% by 2028 Thanks to

AI Partnership, According to Cantor

IREN Limited (IREN) has established itself as a significant force in the AI infrastructure industry after securing a major $9.7 billion GPU cloud agreement with Microsoft, fueling bullish sentiment among analysts regarding the stock’s future. Cantor Fitzgerald boosted its price target for

from $100 to $142, suggesting the stock could more than double from current prices. Bernstein and Roth Capital also raised their targets, highlighting the transformative nature of the deal . The five-year contract will see IREN deliver GB300 GPUs from its Horizon data centers in Texas to Microsoft, marking a strategic shift from its previous focus as a mining company .

The agreement with Microsoft features a 20% upfront payment, which is expected to yield a 32% leveraged internal rate of return and finance about half of the $3 billion needed for the Horizon data center expansion

. This collaboration has already demonstrated IREN’s capability to secure lucrative, recurring income streams, with the deal projected to add $1.94 billion in annualized AI cloud revenue once fully operational . The company’s first quarter of fiscal 2026 highlighted its rapid evolution, as revenue soared 355% year-over-year to $240.3 million and adjusted EBITDA reached $91.7 million.

Analysts pointed to IREN’s vertically integrated approach—controlling energy, land, and infrastructure—as a major advantage. The company aims to expand its GPU inventory to 140,000 units by 2026, with a goal of reaching $3.4 billion in annualized AI cloud revenue

. This growth is backed by $1.8 billion in cash and a recent $1 billion convertible bond raise . Still, JPMorgan warned that the aggressive expansion could pressure the balance sheet, requiring more than $9 billion in funding even with Microsoft’s prepayment .

The Sweetwater 1 data center, a two-gigawatt facility scheduled to open in 2026, is seen as a pivotal growth driver. Canaccord Genuity valued this site at $32 per share, noting IREN’s access to low-cost energy and its ability to scale without depending on external co-location services

. So far this year, the stock has climbed 547%, though it recently pulled back 6.8% amid mixed investor sentiment .

Despite ongoing risks such as execution hurdles and possible dilution, the Microsoft partnership has dramatically altered IREN’s outlook. With a 20% prepayment enhancing capital efficiency and an anticipated 85% EBITDA margin for the contract

, analysts like Cantor’s Brett Knoblauch described the deal as “transformative,” positioning IREN to benefit from the surge in AI infrastructure demand .