JPMorgan Upgrades Iren (IREN) Conviction, Values Bitcoin Miners as Integrated Cloud Businesses

Iren Limited (NASDAQ:IREN) is one of the best upside stocks to buy now. On November 24, JPMorgan raised the firm’s price target on Iren to $39 from $28 and kept an Underweight rating on the shares. The recent surge in M&A activity within the HPC sector has led JPMorgan to have greater confidence in Bitcoin mining companies, such as Iren. This increased conviction is attributed to the bank’s use of higher valuation assumptions for the miners, which are based on viewing them as integrated cloud businesses.

Earlier the same month in its FQ1 2026 earnings report, Iren highlighted a fifth consecutive quarter of increasing revenues and major strategic progress. The company achieved a record revenue of $240 million, marking a 28% sequential increase and a 355% jump year-over-year. The company also earned $1.08 in FQ1, which surpassed guidance by $0.94.

In the quarter, Iren also secured a major, long-term AI cloud contract with Microsoft valued at $9.7 billion. This contract is expected to generate ~$1.94 billion in ARR for Iren. The deal includes a crucial provision for a 20% upfront prepayment from Microsoft, which significantly aids Iren’s capital expenditures and supports a capital-efficient growth strategy.

Iren Limited (NASDAQ:IREN) operates in the vertically integrated data center business in Australia and Canada. The company owns and operates computing hardware, as well as electrical infrastructure and data centers. It also mines Bitcoin.

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.