Iren Limited (IREN) is a Buy Amid Pivot from Bitcoin Mining to Data Centers

IREN Ltd (NASDAQ:IREN) is one of the best stocks to buy and hold for the next 6 months. On February 6, analysts at Compass Point reiterated a Buy rating on IREN Ltd (NASDAQ:IREN) and settled on a $105 price target.

Iren Limited (IREN) is a Buy Amid Pivot from Bitcoin Mining to Data Centers

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The positive stance follows the company expanding its secured power base to 4.5GW of grid-connected power with the addition of 1.6GW from the Oklahoma campus. The company is increasingly advancing deployments in Canada and Texas.

Amid the expansion drive, on February 6, research firm Citizens reiterated a Market Outperform rating on IREN Ltd and an $80 price target.

Citizens have expressed confidence in IREN Ltd’s long-term prospects amid a strategic pivot from Bitcoin mining to providing higher-quality data center capacity to large-scale customers. The company already has over 2 gigawatts of capacity available to pursue contracts with hyperscalers.

In addition, IREN has secured a $3.6 billion in GPU financing for its Microsoft contract on February 5. The financing will supplement Microsoft’s $1.9 billion prepayment, thereby allowing the company to cover 95% of GPU-related capital expenditures for its targeted 140,000-GPU expansion. The expansion drive is expected to deliver $3.4 billion in annual recurring revenue.

Iren Limited (NASDAQ:IREN) operates data centers powered by renewable energy, specializing in high-performance computing for artificial intelligence (AI) cloud services and Bitcoin mining. The company recently shifted focus to AI infrastructure, securing major deals, including a $9.7 billion partnership with Microsoft.

While we acknowledge the potential of IREN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than IREN and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.