Iren Limited (IREN -1.67%) is catching the attention of Wall Street analysts. Several new notes came out this week supporting the buy case for Iren stock.
Demand for the services of the data center operator is quickly rising. That helped lead to a jump of almost 20% in the stock this week as of Friday morning, according to data provided by S&P Global Market Intelligence.
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Iren is becoming a more familiar name
Iren has been pivoting its data center operations less for cryptocurrency mining and more to serve the increasing need for AI compute power and other high-performance computing applications.
Earlier this week, tech giant Nvidia and AI research and deployment company OpenAI announced a new plan to add massive data center capacity utilizing Nvidia's platform. That partnership reinforced the demand picture for the growing compute capacity that Iren is developing.
It helped lead several Wall Street analysts to get even more optimistic on Iren stock. Arete Research initiated coverage on Iren with a buy rating and a price target of $78 per share, according to reports.
Two other firms raised their price targets on Iren as well this week. Wall Street is gaining optimism because Iren is preparing for the growing market. Earlier this month Iren co-founder and co-CEO Daniel Roberts gave investors a preview of what's coming, stating, "Demand for our AI Cloud is accelerating as we prepare for the delivery of approximately 9,000 Nvidia Blackwell GPUs [graphics processing units] over the coming months."
Management has also provided investors with a preview showing its plans to operate with 20,000 GPUs and eventually sees a path for up to 60,000. It seems clear that the demand will be there. If it executes its plan, Iren stock could have further to run.
