Arete Research Initiates Coverage on IREN with Buy Rating and $78 Price Target

Arete Research Initiates Coverage on IREN with Buy Rating and $78 Price Target

Arete Research has initiated coverage on IREN Limited (IREN) with a Buy rating and a price target of $78 per share. The research firm cited the company's strategic pivot into AI cloud services and its robust expansion plan as key drivers for the positive outlook.

IREN recently announced a significant expansion of its AI cloud capacity, doubling its GPU count to 23,000 through a $674 million investment. The company acquired 12,400 new GPUs, including 1,900 NVIDIA H100s and H200s, 19,100 NVIDIA B200s and B300s, 1,200 NVIDIA GB300s, and 1,100 AMD MI350Xs IREN Expands AI Cloud Capacity: Is the Growth Thesis Strengthening?^[1]. This substantial hardware acquisition reflects the growing demand for AI computing resources, which IREN is well-positioned to meet with its diversified hardware portfolio.

Arete Research also noted that IREN's AI Cloud annual run-rate revenue targets have been raised to exceed $500 million by the first quarter of 2026, reflecting the company's expanded capacity and strong market demand. The research firm highlighted the company's ability to secure revenue commitments through pre-contracting, indicating robust demand for high-performance computing resources.

Moreover, IREN's unique business model, combining traditional cryptocurrency mining operations with emerging AI cloud services, provides revenue stability and growth opportunities. The company's existing infrastructure and operational expertise in managing large-scale computing operations translate effectively to AI service provision.

Arete Research's positive outlook on IREN is supported by the company's strategic positioning and execution capabilities. The research firm's price target of $78 per share reflects investor confidence in IREN's ability to capitalize on the growing AI market and its successful integration of cryptocurrency mining and AI services.