Catenaa, Saturday, May 16, 2026- Research firm Bernstein raised its outlook on AI infrastructure company IREN after the company secured a long term partnership with NVIDIA that includes a $3.4 billion artificial intelligence cloud contract and a potential $2.1 billion equity investment option. Bernstein analysts assigned a $100 price target to IREN shares, implying roughly 76% upside from the stock’s recent closing level as investors increasingly focus on the company’s transition from bitcoin mining infrastructure into large scale AI cloud operations.
IREN shares closed at $56.85 on May 7 following the announcement of the NVIDIA partnership. Bernstein analysts led by Gautam Chhugani described the agreement as a major technological and capital alignment between the two companies.
The deal centers on IREN’s 2 gigawatt Sweetwater data center project, which Bernstein described as one of the most ambitious AI infrastructure developments currently underway in North America.
Under the agreement, NVIDIA secured an option allowing it to invest up to $2.1 billion into IREN at $70 per share. Analysts said the partnership strengthens IREN’s ability to secure next generation graphics processing units and positions the company more competitively in the rapidly expanding AI cloud market.
Bernstein also said IREN remains on schedule to deliver the first phase of its 200 megawatt Horizon data center project for Microsoft during the third quarter.
The report follows IREN’s recent $625 million acquisition of Mirantis, a cloud software and infrastructure company focused on container orchestration and GPU management services.
The NVIDIA partnership marks another example of bitcoin mining firms transforming into AI infrastructure providers as demand for computing power accelerates worldwide.
Companies operating large energy intensive mining facilities increasingly view artificial intelligence data centers as higher growth businesses with stronger long term revenue opportunities.
Analysts said IREN’s access to power infrastructure and existing data center operations gives the company a competitive advantage as major technology firms race to secure AI compute capacity.
The Sweetwater site alone is expected to support large scale AI cloud deployments requiring advanced GPU systems and substantial energy supply.
Bernstein estimated IREN’s artificial intelligence cloud annual recurring revenue could reach $3.7 billion by calendar year 2026 as deployments expand under agreements involving both Microsoft and NVIDIA.
The shift also reflects broader convergence between crypto mining infrastructure and AI computing industries, both of which require large power resources and specialized hardware systems.
Bernstein analysts maintained an “Outperform” rating on IREN and described the AI data center market as still being in the early stages of expansion.
Researchers following AI infrastructure markets noted that partnerships with NVIDIA remain highly valuable because of limited global GPU supply and rising competition among cloud providers.
Industry analysts also highlighted the strategic importance of IREN’s acquisition of Mirantis, which allows the company to move beyond basic infrastructure leasing toward managed AI cloud services and vertically integrated operations.
Market observers said companies capable of combining energy infrastructure, GPU access and cloud software services may gain stronger long term positioning within the AI economy.
At the same time, analysts cautioned that IREN still faces execution risks, including attracting anchor clients and completing large scale infrastructure deployment on schedule.
IREN’s partnership with NVIDIA has strengthened investor confidence in the company’s transformation from bitcoin mining operator into a major artificial intelligence infrastructure provider.
The combination of GPU supply access, large scale energy assets and cloud software integration places the company among a growing group of firms attempting to capitalize on surging global demand for AI computing capacity.
As technology companies continue investing billions into AI infrastructure, investors are increasingly viewing former crypto mining firms as potential participants in the next generation data center economy.
IREN, previously known primarily as a bitcoin mining company, has spent recent years expanding into high performance computing and artificial intelligence infrastructure markets. The shift accelerated after the 2024 bitcoin halving reduced mining rewards and pressured profitability across the crypto mining sector. Many mining companies began repurposing energy intensive infrastructure and data centers for AI cloud operations because artificial intelligence workloads require large amounts of power and advanced graphics processing units. NVIDIA emerged as one of the dominant suppliers of AI chips during the generative AI boom, making partnerships with the company strategically valuable for cloud infrastructure firms. At the same time, Microsoft and other technology companies have increased spending on AI data centers worldwide as competition intensifies across artificial intelligence markets.
