Shares of IREN Ltd (NASDAQ:IREN) continued to trade under pressure in early trading on Monday amid growing concerns around AI infrastructure spending.

Here are some key analyst takeaways:

  • JPMorgan analyst Richard Choe upgraded the rating from Underweight to Overweight, while raising the price target from $46 to $65.
  • BTIG analyst Gregory Lewis maintained a Buy rating and price target of $80.

Check out other analyst stock ratings.

JPMorgan: IREN can establish itself as a top-tier neocloud provider, supported by a NVIDIA Corp (NASDAQ:NVDA) partnership, Choe said. The company is signing up more customers and industry pricing has risen substantially, he added. Neocloud contracts are rising from $10-$15 per Watt to $15-$20 per Watt and higher, he added.

Customer pre-payments, which help fund GPU procurement, range from 25-50%. Choe expects pre-payments to remain a part of future neolcoud deals. He added that:

  • IREN raised its 2026 ARR (annual recurring revenue) guidance from $3.4 billion in November to $3.7 billion in May and recently to as much as $4.0 billion.
  • The company ended June with a capacity of 40 MW (megawatts)
  • It is likely to reach about 400 MW of operational capacity by the end of 2026, which supports its ARR guidance of $4 billion.

"IREN has been able to sign additional deals throughout the year at increasingly higher prices and now has a broad mix of AI customers," Choe further wrote.

BTIG: IREN is among the few "vertically integrated (think power and compute) AI service providers" with potential power capacity of more than 5GW (gigawatts), Lewis said. The company is a preferred provider of Nvidia GPUs, which has helped it build a GPU-as-a-service (GPUaaS) business with a run-rate of around $4 billion, he added.

The analyst noted that:

  • IREN expects to bring on around 730MW of compute next year
  • The company has around 1.1GW of international power capacity in Spain and Australia

Lewis expects IREN to benefit from “a tight market” for both power and compute, which should keep GPU rental rates firm to higher.

IREN Price Action: Shares of IREN had declined by 1.55% to $43.15 at the time of publication on Monday.

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