From 24/7 Wall St. · Alex Sirois · · 1m 20s
IREN Energy Pipeline Optionality
IREN's AI power infrastructure offers high upside with $47.23 price and $80.21 target.
In brief
IREN's AI power infrastructure offers high upside with $47.23 price and $80.21 target. IREN's unmonetized energy pipeline could generate billions if deployed at $25 million per megawatt. Originally reported by 24/7 Wall St..
IREN's Power Portfolio
IREN owns more than 5 gigawatts of announced power across texas, british columbia, oklahoma, spain, and south australia.
“more than 5 gigawatts of announced power across texas, british columbia, oklahoma, spain, and south australia”
Microsoft and NVIDIA Contracts
IREN has a $9.7 billion ai cloud contract with microsoft and a $3.4 billion five-year deal with nvidia.
“a $9.7 billion ai cloud contract with microsoft and a $3.4 billion five-year deal with nvidia”
High Pricing for Capacity
Three-year contract pricing is up 125% since november with recent deals above $20 million per megawatt of it load.
“three-year contract pricing is up about 125% since november with recent deals above $20 million per megawatt of it load”
Monetized Capacity
Only less than 10% of the five-gigawatt portfolio is monetized with customer prepayments covering 45% to 55% of gpu capex.
“only less than 10% of the five-gigawatt portfolio is monetized”
Q4 Financials
IREN posted a $684 million net loss on $137.2 million of q4 revenue that missed estimates and fell 26.75% year over year.
“iren posted a $684 million net loss on $137.2 million of q4 revenue that missed estimates and fell 26.75% year over year”
Capex and Losses
Adjusted ebitda fell from $59.5 million in q3 to $19.2 million with fy27 capex guided at $25 to $30 billion.
“adjusted ebitda fell from $59.5 million in q3 to $19.2 million”
Analyst Targets
Analyst targets imply substantial upside with a mean target of $80.21 versus current price of $47.23.
“iren trades at $47.23 against a mean analyst target of $80.21”
Key Risks
Key risks include customer concentration in microsoft and nvidia, gpu obsolescence, and potential ercot rule changes.
“key risks include customer concentration in microsoft and nvidia, gpu obsolescence, and potential ercot rule changes”
The big picture
IREN's unmonetized energy pipeline could generate billions if deployed at $25 million per megawatt.
