Key Takeaways
- Shares of IREN climbed 13.1% Monday to $43.91 following news that Anthropic is pursuing 1.4 GW of AI cloud infrastructure from Australian data center operators
- According to the Australian Financial Review, Anthropic’s procurement process could be valued at approximately A$22 billion, with a selection timeline of at least six weeks
- The AI company is likely to distribute the contract among four to five different providers rather than selecting a single winner
- Analyst consensus stands at “Moderate Buy” with a mean price target of $82.36; Bernstein maintains the highest target at $100
- The company’s latest quarterly results fell short of expectations, posting ($0.25) EPS versus the ($0.22) consensus, while revenue of $144.79M missed the $219.69M forecast
Shares of IREN advanced 13.1% during Monday’s trading session, finishing at $43.91, after Australia’s leading financial publication reported that Anthropic is pursuing a minimum of 1.4 gigawatts of AI cloud infrastructure from data center operators in Australia through what could be an A$22 billion procurement initiative.
The equity touched an intraday peak of $44.97, representing a significant move from the previous session’s close of $38.82. Trading volume surged to approximately 53.4 million shares, running roughly 27% higher than typical daily activity.
Market participants have identified IREN as a frontrunner for winning a portion of this infrastructure contract, particularly citing the company’s Bundey facility and established power grid infrastructure as competitive advantages.
According to the Australian Financial Review’s reporting, Anthropic intends to deploy at least 1 GW of this capacity before the close of 2027, a timeline that coincides with the company’s launch of operations in Australia earlier this year.
That said, investors should maintain realistic expectations. Anthropic reportedly intends to spread the infrastructure requirements across four to five separate vendors instead of consolidating with one provider. Additionally, no formal agreements have been executed, and industry sources indicate a final determination won’t arrive for a minimum of six weeks.
The enthusiasm surrounding this development also reflects broader market confidence in cryptocurrency mining companies pivoting toward AI infrastructure services. TeraWulf’s recent success securing a significant Anthropic partnership has fueled speculation that IREN might replicate similar gains.
Analyst Outlook Remains Constructive
The Street’s view on IREN leans positive overall. Bernstein continues to back the stock with a Buy recommendation and $100 price objective. Cantor Fitzgerald upgraded its target from $77 to $99 while maintaining an “overweight” stance. Jefferies launched coverage with a Buy rating and $79 target. JPMorgan represents the bearish minority, holding an “underweight” view with a $46 price objective.
Across 20 Wall Street analysts, the aggregated rating lands at “Moderate Buy,” with a mean price target of $82.36. Goldman Sachs has established a $50 forecast.
Institutional investors control 41.08% of outstanding shares, with multiple funds expanding their stakes during recent reporting periods.
Last Quarter’s Results Disappointed
IREN’s latest financial disclosure, published on May 8th, underperformed Wall Street’s projections. The firm reported adjusted EPS of ($0.25), falling short of the ($0.22) consensus forecast. Quarterly revenue reached $144.79 million, significantly trailing the $219.69 million analyst estimate.
IREN maintains a debt-to-equity ratio of 1.44, a current ratio of 3.72, and commands a market capitalization near $15.69 billion. The stock’s 50-day moving average rests at $54.72, indicating Monday’s closing price remains beneath that technical indicator.
The organization recently brought aboard Kambiz Aghili as Chief Product Officer and Michael Nudelman as Chief Development Officer. Both executives bring experience from Oracle Cloud Infrastructure, Google, and CyrusOne.
Wall Street projects IREN will deliver full-year EPS of ($1.25).
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