Canaccord Genuity Boosts IREN Limited (IREN) Price Target to $70, Maintains Buy

IREN Limited (NASDAQ:IREN) is one of the top stocks offering high upside potential in the data center and AI sectors. On November 10, Canaccord Genuity raised its price target on IREN Limited (NASDAQ:IREN) to $70 from $42, while keeping a Buy rating. The upgrade came after the company signed a new deal with Microsoft to supply GPU services across its Horizons 1–4 data centers, a move analysts say adds meaningful long-term value.

Canaccord’s analysis valued the Microsoft GPU project at about $22 per share, using a discounted cash flow model with an 8% weighted average cost of capital. The firm also lifted its valuation of IREN Limited’s Sweetwater 1 site from $24 to $32 per share, citing higher peer valuations, though it noted the site still trades at a discount compared to data centers with co-location agreements. In total, the $28 price target increase reflects $22 from the Microsoft deal and $6 from the Sweetwater upgrade.

On November 6, IREN Limited reported fiscal Q1 2026 revenue of $240.3 million, up from $187.3 million in the prior quarter. Most of this came from Bitcoin mining ($232.9 million), while AI cloud services contributed $7.3 million. Despite record revenue, investor concerns linger over rising costs and earnings expectations. Looking ahead, the company is targeting an annualized run rate of $3.4 billion by the end of 2026, supported by plans to deploy 40,000 GPUs in Canada and expand its AI cloud offerings.

IREN Limited (NASDAQ:IREN) is a leading AI cloud service provider, delivering large-scale GPU clusters for AI training and inference. Its vertically integrated platform is built on a portfolio of grid-connected land and renewable-powered data centers across the U.S. and Canada, positioning the company to benefit from growing demand for AI and high-performance computing.

While we acknowledge the potential of IREN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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