IREN (IREN), one of the largest self-operated Bitcoin miners in the U.S., is drawing Wall Street attention with its pivot into AI cloud infrastructure.

Bernstein analysts raised their price target on IREN to $75 from $20, implying roughly 80% upside, while reiterating an outperform rating on the stock. The firm highlighted IREN’s strategy of building its own AI cloud business, rather than relying solely on co-location deals with partners like CoreWeave (CRWV).

IREN shares have already surged dramatically, up more than eight-fold from their 52-week low of $5.13 in April and 365% year-over-year.

Despite initial skepticism around the miner’s ability to execute a capital-intensive data center build-out and compete with AI cloud providers tied to hyperscalers and Nvidia (NVDA), Bernstein views IREN’s AI pivot as credible.

IREN is targeting rapid growth, projecting $500 million in annual recurring revenue by Q1 2026 supported by 23,300 GPUs, up from approximately $14 million in Q1 2025.

The company also retains flexibility with its 3-gigawatt power portfolio, balancing Bitcoin mining and AI workloads to optimize revenue per megawatt, according to Bernstein analysts led by Gautam Chhugani.

IREN’s 50 EH/s mining operation is estimated to generate $600 million in annualized EBITDA at current Bitcoin prices, funding its AI expansion.

Bernstein has updated its valuation approach to a sum-of-parts model, assigning 87% of enterprise value to AI cloud and co-location potential at IREN’s 2GW West Texas site, with the remaining 13% attributed to Bitcoin mining.

At the revised target, IREN would trade at $7.5 million per megawatt (MW), higher than other AI-focused miners but still below established data center peers like CoreWeave, suggesting further room for multiple expansion.