Wall Street's Biggest IREN Bull Hiked Price Target to $142 After $9.7B Microsoft AI Deal

Core Insights - IREN has secured a $9.7 billion agreement with Microsoft to supply 200 megawatts of AI data center capacity, positioning itself favorably in the market [1] - Analysts have raised their price targets for IREN significantly, indicating strong bullish sentiment, with Cantor Fitzgerald's Brett Knoblauch increasing his target to $142 from $100, suggesting over 100% upside potential from the recent close of $67.75 [2] - Bernstein's Gautam Chhugani highlighted that the Microsoft deal could generate $2 billion in annual recurring AI cloud revenue for IREN by 2027, in addition to approximately $500 million from existing operations [3] Financial Projections - Chhugani has revised his forecast for IREN's AI cloud revenue to $2.5 billion by 2027, up from a previous estimate of $1.1 billion, reflecting the positive impact of the Microsoft deal [4] - The valuation of IREN's Sweetwater site has been set at $5 million per megawatt, based on recent M&A multiples [4] Market Position - IREN's 2.9 gigawatt portfolio allows for expansion in line with demand without reliance on co-location partners, which is expected to enhance profitability compared to competitors like CoreWeave and Nebius [4] - The Microsoft deal utilizes only about 10% of IREN's total power capacity across British Columbia and Texas, indicating potential for further scaling with Microsoft or other hyperscalers [5] Analyst Sentiment - Roth Capital has also increased its price target for IREN to $94 from $82, reflecting a positive outlook on the company's future performance [5]