SKN | JPMorgan Raises IREN Outlook as AI Infrastructure Transforms Its Revenue Potential

Key Takeaways:

• JPMorgan upgraded IREN to Overweight from Underweight and raised its price target to $65, reflecting a significantly stronger outlook for the company’s AI infrastructure business.
• The bank projects IREN could generate approximately $24 billion in annual revenue by 2030, compared with $707 million reported for fiscal 2026.
• JPMorgan’s model assumes roughly 2,065 MW of capacity by the end of the decade, revenue of about $13 million per MW and EBITDA margins near 65%.
• The analysis reflects IREN’s transition from Bitcoin mining toward an AI cloud infrastructure model, supported by major Microsoft and NVIDIA-related contracts.

JPMorgan has significantly revised its view of IREN, upgrading the company to Overweight from Underweight and raising its price target to $65. More importantly, the bank’s model projects that IREN could generate approximately $24 billion in annual revenue by 2030, a dramatic expansion from the $707 million reported for fiscal 2026.

JPMorgan Reframes IREN Around AI Infrastructure

The core of JPMorgan’s revised thesis is IREN’s transition from a Bitcoin-mining business toward a vertically integrated AI cloud infrastructure platform. The bank’s projection assumes approximately 2,065 MW of capacity by the end of the decade, with revenue of roughly $13 million per MW and EBITDA margins near 65%.

For JPMorgan, those assumptions fundamentally change the financial profile it assigns to the company. Rather than valuing IREN primarily through cryptocurrency exposure, the bank is assessing its power, land, data centers, GPUs and software as components of a broader AI infrastructure platform.

Contracts Give JPMorgan’s Forecast a Commercial Foundation

The bank’s outlook is supported by IREN’s existing commercial relationships. Microsoft has signed contracts valued at approximately $9.7 billion, while NVIDIA-related contracts represent approximately $3.4 billion. These commitments provide an important foundation for IREN’s targeted expansion in AI infrastructure.

JPMorgan’s analysis also points toward an operational milestone for IREN: management expects approximately $4 billion in operational annual recurring revenue by December 2026. The bank is therefore building its longer-term forecast on an existing transition rather than treating the $24 billion figure as an immediate earnings expectation.

AI Cloud Is Already Changing IREN’s Revenue Mix

The shift is visible in IREN’s recent operating figures. AI Cloud Services generated $128.8 million in fiscal 2026 revenue, approximately eight times the prior year. During the June quarter, AI Cloud revenue reached $70.5 million, more than double the previous quarter and above Bitcoin mining revenue of $66.7 million.

That crossover is important to JPMorgan’s thesis. It indicates that the emerging AI business is already becoming a meaningful contributor to IREN’s reported revenue, rather than remaining purely a future infrastructure concept.

Why JPMorgan’s Forecast Matters

JPMorgan’s $24 billion projection remains an analyst forecast, not company guidance or reported revenue. Its significance lies in the assumptions embedded within the model: substantial power and data-center capacity, high revenue generation per MW and strong operating margins.

For sophisticated investors, the relevant issue is therefore execution. JPMorgan is effectively asking whether IREN can convert its infrastructure position and contracted AI demand into a scaled, high-margin business by the end of the decade. The bank’s upgrade signals that it now views that transformation as sufficiently credible to warrant a materially different assessment of IREN’s long-term economics.

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