‘Demand Is Strong Enough’: Five-Star Analyst Bullish on Iren’s $3.5B Capex for Nvidia GPUs, Other Hardware

Shares in AI cloud company Iren Limited IREN +12.84% ▲ plunged early Thursday despite its new purchase agreement with Nvidia NVDA +1.66% ▲ . H.C. Wainwright’s five-star analyst Mike Colonnese is bullish on the arrangement, noting that the Australian company’s plan to spend $3.5 billion on hardware during the second half of this year shows that “customer demand is strong enough.”

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**Iren Agrees to Buy 50,000 Nvidia GPUs **

On Wednesday, Iren said it was expanding its fleet to 150,000 graphics processing units (GPUs) by buying 50,000 of Nvidia’s next-generation B300 data center GPUs.

In addition to the GPUs, the Sydney-based company plans to commit its $3.5 billion of capital expenditure (capex) on servers, storage, and networking equipment during the last six months of this year.

Analyst Flags Bullish Cues in Iren’s Latest Update

Reacting to the update, Colonnese reaffirmed his Buy rating on IREN stock and maintained his price target of $80, suggesting over 82% upside.

The analyst noted that the move showed management confidence in solid customer demand, as the transactions are planned ahead of any secured contracts.

‘An Important Step Forward’

Furthermore, Colonnese believes that the transaction signals to the market that Iren is on schedule in terms of the progress of its under-construction data center infrastructure in Childress, Texas, and Mackenzie, British Columbia.

“Netting it all out, investors should view yesterday’s announcement as an important step forward in IREN derisking its fiscal 2026 outlook for the AI Cloud business,” the analyst noted.

He added that Iren’s raised guidance is another pointer to the management’s conviction in the firm’s capacity to ramp up its AI operations.

How Can Iren Reverse Falling Shares?

In terms of investors’ reaction to the update — Iren’s shares were down over 6% to $41.20 as of 8:28 a.m. EST– Colonnese blamed the selloff on concerns about share dilution sparked by the company’s plans to potentially sell up to $6 billion in new shares.

To turn things around, the analyst contended, Iren will need to show that it can lock in attractive financing for its uncontracted hardware.

Is IREN Stock a Good Buy?

Across Wall Street, analysts’ approach to IREN’s shares remains tempered, with the consensus rating on the stock presently a Moderate Buy. This breaks down into eight Buys, two Holds, and one Sell recommendation over the past three months.

However, the average IREN price target of $79.78 implies about 82% upside from current trading levels.

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