Iris Energy’s AI Cloud Vision Spurs Bernstein’s 80% Price Target Hike

- Iris Energy sees 500% stock surge as it transitions to AI cloud services. - Bernstein raises price target for IREN to $75, highlighting GPU expansion and low-cost power. On September 24, 2025, The Block reported that Iris Energy (IREN) is transforming from a prominent bitcoin mining company into a vertically integrated AI cloud provider. As a result, investment firm Bernstein has raised its price target for IREN to $75, an 80% potential upside, citing the company's rapid GPU fleet expansion, operational flexibility, and access to significant low-cost power as key drivers for this increase. The report noted that Iris Energy expanded its GPU fleet 10-fold in the last year, with the fleet now exceeding 23,000 units and including cutting-edge Nvidia Blackwell chips. Consequently, the company aims to generate $500 million in annualized AI service revenue by the first quarter of 2026. Unlike competitors who partner with hyperscalers, Iris Energy builds its own AI cloud infrastructure, a strategy that gives the company direct control over its power, land, and data centers and allows it to retain more profit from GPU operations. In the energy-intensive AI sector, Iris Energy holds a distinct advantage with its access to nearly 3 gigawatts of low-cost power. This strategic transition has redefined the company’s enterprise valuation, as AI and co-location services now account for 87% of its worth, while bitcoin mining represents just 13%. Despite this shift, Iris Energy continues to be a leading self-operated bitcoin miner in the U.S., and its mining operations help fund the capital expenditures for its growing AI business. Over the past six months, the company's stock has surged by more than 500%, growth that propelled it past Marathon Digital (MARA) to become the largest public bitcoin miner by market capitalization. As of 17:09 UTC on September 24, 2025, CoinMarketCap data showed Bitcoin (BTC) trading at $113,757.83, with its 24-hour trading volume up by 0.928%.