IREN Stock Hits All-Time High—Still A 'Picasso At A Garage Sale'

Core Viewpoint - IREN Limited's stock has surged over 21% this week, reaching an all-time high, driven by retail investor enthusiasm and perceived undervaluation despite a 400% increase this year [1][5]. Group 1: Bull Case - IREN's transition to a cloud services provider and its substantial power capacity of 2,910 MW could position it as the largest AI datacenter company globally, with potential annual profits of $4.4 billion [2]. - At typical datacenter multiples of 25x, this suggests an enterprise value of $110 billion, or $83 billion after accounting for debt, with further value capture possible through plans to operate as a Cloud Services Provider like AWS or Google Cloud [3]. - IREN's assets were developed at a lower cost of approximately $4 million per MW, compared to the industry standard of $10 million per MW, leveraging profits from Bitcoin [3]. Group 2: Bear Case - The bear case includes risks such as a potential decline in AI demand and execution challenges if IREN fails to construct high-quality data centers [4]. - Competitors may attract major customers more quickly, although IREN is already securing deals, such as with Fluidstack, and gaining support from Nvidia [4]. Group 3: Price Targets - Despite current prices, IREN is still considered undervalued, with an intrinsic value estimated at a minimum of $106 in a bear case scenario and potentially as high as $300 if AI demand continues to rise [5]. - The stock reached a new all-time high of $52.19 and was trading at $50.08 at the time of publication [5].