Preface

Cantor Fitzgerald has issued a bold forecast for IREN shares, predicting a significant increase to $384 per share by 2028 from the current price of $62.38. This optimistic outlook is largely due to IREN's strategic $9.7 billion partnership with Microsoft, positioning the company as a formidable entity in the ever-expanding AI data center market. Alongside this, IREN has upgraded its 2026 revenue projections, sparked by heightened demand for cloud services and increased GPU capability, outlining its path to potentially exponential growth.

Lazy bag

IREN's transformation from a bitcoin miner to an AI infrastructure giant is underscored by a $9.7 billion deal with Microsoft. Cantor foresees the stock could escalate to $384 by 2028.

Main Body

IREN, traditionally recognized as a bitcoin mining enterprise, has pivoted remarkably, emerging as a major AI infrastructure contender. This transformation has been accelerated by a substantial $9.7 billion agreement with Microsoft, underscoring its ambition to become a leader in the rapidly evolving AI data center sector. Following its third-quarter earnings announcement, Cantor Fitzgerald analyst Brett Knoblach doubled down on his optimistic stance, suggesting that IREN's shares could soar to $384 by 2028.

Currently trading at approximately $62.38, IREN has demonstrated resilience and ambition. Its continuous evolution and capacity expansion signify more than just a passing trend; it reflects strategic intent to dominate the cloud and AI domains. Knoblach highlights that the firm's updated revenue guidance for 2026 skyrocketed from an initial $500 million to a staggering $3.4 billion, propelled by advancements in its GPU infrastructure and cloud service demand.

In contrast, Knoblach also explores potential challenges, like the speculative nature of resources like GPUs that might depreciate after five years. However, he remains unfazed, emphasizing Microsoft's involvement as a testament to IREN's robust infrastructure and future-ready architecture. This partnership not only lends credibility but also marks a pivotal inflection point as IREN scales its operations in Texas and Canada, aspiring for an annual revenue peak of $18.6 billion.

IREN's preference for cloud strategies over colocation further emphasizes its strategic foresight, ensuring substantial returns and upfront financial support from Microsoft. Even if certain technologies evolve, IREN's strong foundation and asset value make it a formidable player, poised to generate significant revenues through potential colocation contracts and beyond.

Despite a modest revision of the near-term stock target from $142 to $136 owing to unpredictable bitcoin mining earnings, the overarching message remains that IREN, labeled by Knoblach as a 'top pick,' is not just sustaining momentum but potentially in the inaugural phase of an extensive growth trajectory. Furthermore, recent market trends have seen IREN's shares climb to $67.12, indicating considerable investor confidence following general upticks in both the stock and cryptocurrency markets.

Key Insights Table