IREN (NasdaqGS:IREN) just pulled off one of the more aggressive capital raises in the AI infrastructure space, stacking new convertible notes and equity on top of its $9.7 billion Microsoft cloud deal.
See our latest analysis for IREN.
Even with a recent pullback that includes a 1 month share price return of negative 12.9 percent, IREN still boasts a powerful year to date share price return above 280 percent and a massive 3 year total shareholder return over 3,200 percent. This signals strong but increasingly volatile momentum as investors weigh AI upside against dilution and execution risk.
If you like the IREN story but want more ways to play the AI infrastructure theme, now is a good time to explore high growth tech and AI stocks for other high potential names.
With the stock now trading near some analysts’ targets after a 280 percent year to date surge and a hefty capital raise, has the recent pullback opened a genuine entry point, or is the market already discounting IREN’s next leg of growth?
According to BlackGoat’s widely followed narrative, IREN’s fair value of $94.84 sits far above the recent $39.92 close, framing a large implied upside that rests on aggressive but structured growth assumptions.
A successful upgrade to 30 EH/s by year end would place IREN among industry leaders like RIOT, MARA, and CLSK, who are also planning to expand towards a staggering 70 EH/s. However, the expansion to 30 EH/s appears to be only partially funded, raising concerns about potential further dilution in 2024, which I will monitor closely.
Want to see what kind of revenue surge, profit margins and future earnings multiple BlackGoat believes can support that valuation gap? The full narrative lays out a detailed roadmap of accelerating growth, improving profitability and long term cash generation. In this view, today’s price is presented as a stepping stone rather than a ceiling. Dive in to see which bold assumptions do the heavy lifting.
Result: Fair Value of $94.84 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, the narrative could unravel if execution stumbles on Microsoft capacity build out, or if Bitcoin weakness and fresh dilution erode investor confidence.
Find out about the key risks to this IREN narrative.
If you see the story differently or want to validate the numbers yourself, you can quickly build a personalized narrative in just a few minutes: Do it your way.
A great starting point for your IREN research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include IREN.
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