IREN Stock Could Soar Nearly 500% by 2028 on Microsoft AI Deal, Says Cantor

8 hours ago7 min read2 comments

The financial world is buzzing with a bold prediction from Cantor Fitzgerald that has sent ripples through the markets: IREN stock, the ticker for Iris Energy, possesses the potential for a staggering nearly 500% ascent by 2028. This audacious forecast isn't rooted in mere speculation but is fundamentally tethered to the company's recently inked high-stakes partnership with tech titan Microsoft, a deal squarely focused on powering the voracious computational demands of artificial intelligence.For those of us who track the intricate dance of Wall Street, this move is reminiscent of the kind of strategic, long-term bets that Warren Buffett himself might admire—a play on essential infrastructure for the next technological epoch. Iris Energy, once primarily known for its Bitcoin mining operations, is now strategically pivoting to become a cornerstone of the AI revolution, leveraging its significant energy capacity and data center infrastructure to provide the raw computational horsepower that large language models and complex AI algorithms require.This isn't just a simple services contract; it's a profound validation of IREN's business model and its ability to repurpose its assets for the most lucrative tech trend of our time. The deal signals a massive vote of confidence from one of the world's most valuable companies, suggesting that Microsoft sees IREN's facilities as critical to scaling its Azure cloud and AI ambitions, potentially locking in a reliable, long-term revenue stream that analysts can model with greater certainty.Looking at the macro-economic picture, the Federal Reserve's interest rate decisions will always cast a shadow, but secular trends like the AI arms race often transcend cyclical monetary policy, creating durable growth stories that can outperform even in turbulent markets. The projected growth to $12 per share, as posited by Cantor, implies a fundamental re-rating of the company's earnings potential, factoring in the high-margin, recurring nature of AI compute contracts compared to the more volatile returns of cryptocurrency mining.We've seen this narrative before in nascent industries—a key partnership acting as a catalyst that transforms market perception from a speculative gamble to a foundational utility player. The risks, of course, remain palpable; execution risk is paramount, as IREN must deliver on its capacity build-out without hiccups, and the competitive landscape is fierce, with every major cloud provider and specialized AI infrastructure firm vying for dominance.Furthermore, the immense energy consumption of AI data centers brings regulatory and ESG considerations to the fore, an area where IREN's focus on renewable energy could become a significant competitive advantage. For investors, this presents a classic growth versus valuation dilemma, but the Microsoft seal of approval undoubtedly lowers the perceived risk profile, making IREN a compelling, if high-octane, bet on the unquenchable thirst for AI processing power that will define the latter half of this decade.

#featured

#IREN stock

#Microsoft AI deal

#Cantor Fitzgerald

#price forecast

#data centers

#renewable energy