IREN (NASDAQ: IREN) is currently in transition from Bitcoin mining to AI cloud services and their stock has run up over 50% this past year. They are currently aiming for a full transition by the end of 2026, and the term “AI cloud services” appears 275 times in their June annual report.
IREN stock is currently trading at $45.37 and has a market cap of $17.9 billion, but the average IREN price target of $77.08 implies a roughly 72% upside for this coming year.
But some analysts are considerably more bullish. We have seen some recent price targets in the $90 – $100 range and have seen some go as high as $131.
With their expanding cloud business and massive forecasted revenue growth over this next year, could IREN stock reach $100 in 2027?
IREN Stock Forecast 2027
The Wall Street X forecast for IREN stock is currently $60.43, which is a 33% upside over where it trades today at $45.37. This forecast is based on general optimism around their transition to AI cloud services and the likelihood they will be able to secure major utilization contracts.
Can IREN Stock Reach $100?
In order to hit $100, IREN would need to increase by 120% to a market cap of $39.4 billion. Based on analysis estimates and growth trajectories, this is a possible outcome if IREN can deliver on their transition promises and secure major commitments from AI hyperscalers.
A stock price of $100 would require IREN to substantially outperform our base assumptions.
Why IREN Stock Could Keep Rising
IREN’s shift from Bitcoin mining to AI cloud services has increased their earnings potential dramatically, which is really what this recent surge and positive future outlook are stemming from. The primary reason investors think this pivot will be effective is that IREN already has a lot of the infrastructure required as there are many crossovers between Bitcoin mining and cloud services like electricity demand, cooling, and data centre capacity.
Should IREN be able to successfully complete this turnaround on time and on budget, we think there is a serious amount of earning potential that can come from securing even just a handful of contracts. This would keep investors optimistic and keep that valuation propped up which is important if IREN is to ever hit $100.
IREN Revenue and Earnings Forecast
Wall Street X anticipates IREN’s top line revenue to increase by 41% from now to September 2027.
IREN Analyst Price Targets
The average analyst price target for IREN is currently $77.08, which is a 70% implied upside.
Is IREN Stock Overvalued?
At a price to sales of 25.3, one could make a good case that IREN may be overvalued. Even factoring in growth, with 41% forecasted revenue gains this gives it a PSG ratio of .62, which is quite a bit higher than the S&P’s PSG of .28.
This means that IREN’s current valuation is 120% higher than the S&P 500 when market premium and growth are accounted for. By this measure, IREN stock is currently overvalued.
IREN Stock Bull Case
If IREN can pull off this AI infrastructure transition on time and under budget, they have a serious chance at securing big dollar contracts for capacity.
Additionally, the AI cloud services market as a whole is expected to grow at a Compound Annual Growth Rate (CAGR) of 23.8% out to 2034 which lowers the overall risk of their transition being unprofitable.
IREN Stock Bear Case
The main risk for IREN is the possibility that they have trouble securing long-term contracts with AI companies for computing power and data storage capacity. While their infrastructure transition is likely to be successful, they will find themselves with serious competition from the top contenders in the industry – Amazon, Microsoft, and Alphabet – who have already had time to onboard big name clients.
This competition alongside their inflated valuation are IREN’s two biggest risks.
Is IREN Stock a Buy?
Wall Street X has a STRONG BUY rating for IREN right now with a high risk, high reward profile. The average consensus rating is a BUY.
