NEW YORK, January 12, 2026, 07:08 EST
- IREN shares climbed roughly 2% in early U.S. trading, fueled by renewed bullish analyst commentary
- TipRanks reported that Bernstein’s Gautam Chhugani named IREN his “top AI pick” for 2026
- Investors are focused on U.S. inflation figures due Jan. 13 and the Fed’s rate decision at its Jan. 27-28 meeting
IREN (IREN.O) shares climbed roughly 2.2% in U.S. premarket Monday, following a Bernstein note naming the company a 2026 “top AI pick,” per TipRanks. The stock was flagged at $47.05, up $1.02 from its previous close. 1
The call matters because IREN straddles two volatile sectors: bitcoin-linked miners and AI data centers. Investors are wrestling with whether its grid power and chip agreements can transform a boom-and-bust mining operation into a steadier stream of contracted infrastructure revenue.
Rates remain a key factor. The U.S. consumer price index for December drops Tuesday, followed by the Federal Reserve’s policy meeting on Jan. 27-28. Both events could trigger sharp moves in AI infrastructure stocks, which tend to need plenty of capital. https://www.bls.gov/schedule/news_release/cpi.htm 2
In November, IREN inked a five-year deal with Microsoft worth around $9.7 billion to supply AI cloud capacity using Nvidia GB300 GPUs—these graphics units power AI model training and operation. “We’re proud to announce this milestone partnership with Microsoft,” said co-founder and co-CEO Daniel Roberts. Microsoft’s Jonathan Tinter added, “Together with IREN, Microsoft is delivering cutting-edge AI infrastructure.” 3
Reuters says the Microsoft deal includes a 20% prepayment. Separately, IREN has locked in a $5.8 billion deal with Dell Technologies for equipment tied to the rollout, which is planned through 2026. The same report notes the agreement can be canceled if IREN misses delivery deadlines. 4
A U.S. securities filing revealed that on Jan. 2, IREN registered 17.5 million ordinary shares for a 2025 omnibus incentive plan, a pool usually used for employee stock awards. While the registration itself doesn’t raise cash, it could lead to dilution over time. 5
A recent Zacks commentary on Yahoo Finance revisited the Microsoft deal and the employee-share registration amid the stock’s fluctuations. 6
Bernstein’s Gautam Chhugani urged investors to “start 2026 by buying stocks on the dip,” naming IREN as his top AI pick, according to TipRanks. Chhugani bumped his price target to $75. Meanwhile, B. Riley’s Nick Giles and Fedor Shabalin set targets at $74. J.P. Morgan’s Reginald Smith, however, stuck with a sell rating. 7
IREN isn’t the only one shifting gears. Applied Digital and other ex-crypto players have jumped into AI hosting. Meanwhile, “neocloud” outfits like CoreWeave and Nebius are locking in major capacity contracts as big tech scrambles for chips and power.
Last week, a Seeking Alpha analysis highlighted IREN’s power position as its key strength, citing 2.75 gigawatts of interconnection agreements spread over three West Texas sites. (For reference, one gigawatt equals 1,000 megawatts.) The significance? Dense AI servers often face multi-year delays before hooking up to the grid. 8
Motley Fool columnist Howard Smith noted the stock dropped 21% in December, with some investors cashing out after a strong rally. This happened even as the company relies on bitcoin mining revenue to back its pivot to AI data centers. 9
The downside is clear-cut: setting up AI data centers costs a lot, and any hiccups in construction, power connections, or GPU shipments can delay revenue and strain funding. If bitcoin takes a steep dive, the traditional mining operations generate less cash right when spending hits its highest, potentially leading to more dilution for shareholders.
