Bernstein: IREN Stock Price Drop Due to Market Disappointment Over Lack of New AI Deals

Odaily News IREN's stock price fell sharply after its earnings report, primarily reflecting market disappointment over its failure to secure new AI agreements, rather than a deterioration in fundamentals. Currently, IREN is trading at approximately $39.79 on the Nasdaq, down about 18%. Bernstein analyst Gautam Chhugani pointed out that as IREN transitions from a Bitcoin miner to an AI infrastructure provider, Bitcoin business earnings are no longer the core investment focus. Although IREN's revenue for the second fiscal quarter fell short of expectations due to lower Bitcoin production and price, its AI cloud business revenue more than doubled quarter-over-quarter. IREN has currently signed AI cloud annual recurring revenue contracts worth approximately $2.3 billion, which are expected to increase to $3.4 billion by the fourth quarter of 2026. The company's management stated they are in discussions with multiple potential clients regarding contracts involving billions of dollars. Bernstein believes that IREN has secured approximately $3.6 billion in GPU financing for its Microsoft contract and has only utilized about 10% of its power capacity, providing the flexibility to sign more AI agreements. Therefore, Bernstein maintains its "Outperform" rating on IREN with a target price of $125. (The Block)