5D·

Price targets of the analysts 🚀

$IREN (-0,67%) owns the data centers, the power supply and the property. For maximum performance on a large scale $IREN (-0,67%) the best choice on the market.

Wall Street is slowly starting to realize this, hopefully soon the big hyperscalers will too 🚀

Current Price: $26.48.

Average Price Target: $35.

Average Analyst Success Rate: 51.81%.

1. the US capacity for energy and computing power is severely limited

2. approval and construction of facilities take years

3. vast amounts of computing power are required for inference (running ChatGPT, Claude, etc.).

3. $IREN (-0,67%) is a highly regarded, publicly traded Bitcoin miner with massive data centers under construction in Texas.

4. the company has moved away from Bitcoin mining in these new facilities and instead built them out for AI training and inference.

5 Once completed, these facilities are expected to generate approximately $2 billion in new cash flow.

6. even if the AI fails completely, these facilities are extremely valuable as traditional data centers or can be repurposed for Bitcoin mining.

7. the total market capitalization is currently around 5.8 billion US dollars.

🟢 IREN owns the entire stack - land, power, data center infrastructure and GPUs - and can ramp up capacity faster than anyone else.

🟢 They have just doubled their fleet with the latest Blackwell chips from NVIDIA and are ready to scale.

🟢 Ability to ramp up to tens of thousands of GPUs within a few months

$BTC (-0,06%)
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$WULF (+2,23%)
$CIFR (+0,31%)
$CRWV (+1,6%)

40 Comentários

Tenbagger2024@Tenbagger2024

Hello my dear,
What does their debt ratio actually look like? They must have an enormous capex.
I don't want to know what the investments in the data centers with Nvidia cpu's cost. And Iren probably won't have the cash flow that the big ones (Microsoft, Meta, Alphabet) have.

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BamBamInvest@BamBamInvest

@Tenbagger2024 The subject of dilution and debt is a topic in its own right, which would be too time-consuming to explain. But it is not a problem. And the investments in NVIDIA chips can currently be easily serviced from the cash flow, as they run Bitcoin mining very successfully and efficiently. They also have some cash left over from their last ATM operation. In my opinion, they will not get into financial difficulties here and even if they should raise further capital in whatever form, it will be invested in the expansion and further capacities and they already have the land, power contracts, etc. They already have it.

As I said, I'm not interested in where they will be in 1-2 years but in 10 years, everything in between is just noise and the management has proven its efficiency so far in my opinion.

But that doesn't mean I won't take 30% or so out if we run ahead too fast now and get a $HOOD, $PLTR or $HIMS moment. ✌️

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BamBamInvest@BamBamInvest

@Tenbagger2024 Ps: I like the fact that earnings are now close to September, this could create some intrinsic strength in the stock and potential declines from a possible correction (if we see one) could lead to lower declines and a reduction in the overbuilt RSI which could allow us to continue to rally into the end of the year.

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Gomerdoc@Gomerdoc

@Tenbagger2024 P/E ratio 614, volatility 1 year 101%, corresponding dividend: 0.
The last 3 years: - 22.6% share price performance.
Earnings yield 0.16% in 2025 🙄.
Data on gearing ratio, dynamic gearing ratio and other relevant key figures: not available or not easy to find anywhere.

The share is recommended by many analysts, but all profit expectations and share price fantasies are probably already fully priced in at a P/E ratio of 614 (!). Cave.

This will certainly continue to rise: only: in the end, only the really big players win with AI: $GOOG $MSFT $AMZN and, above all, under the radar: $ASML Without them, no Chinese, Americans or Koreans will do anything. They always earn.
Incidentally, this also applies to $NEE when it comes to green electricity for AI data centers.

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Tenbagger2024@Tenbagger2024

@Gomerdoc
Thanks for your effort, that's why I asked, because I didn't find much about debt and free cash flow.
That always makes me a bit skeptical.
I already wrote a post about nextera last year. I found the multiples interesting. But as far as I could follow, Trump's "drill baby drill" policy has pushed the value down.
I think things might only calm down after Trump.

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investment_wizard_2286@investment_wizard_2286

@Tenbagger2024 Key questions: Use the momentum of the small drop to buy and take short-term profits?

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Tenbagger2024@Tenbagger2024

@investment_wizard_2286
It's September, statistically the weakest month. Good question what happens.

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batic420@batic420

At the very beginning of my stock market career (last November), I invested around €30 in $IREN - simply because I had no idea and it was listed among the top performers on that day.

It must have been worth around €14 at the time. When the share then fell to €5, I thought to myself, "Man, that was money wasted". But lo and behold, it's now on a very good path 😅

However, I have now sold my mini position, I would get back in if there is a setback, but I need to find a clear strategy for my portfolio at the moment.

But only the best for every shareholder - enjoy the good chart! 😋

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Tenbagger2024@Tenbagger2024

@batic420
Would you like to take us with you on the way to your strategy?

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BamBamInvest@BamBamInvest

@batic420 If we see a correction in the market in September, that would certainly be a good entry point, especially as we would then also reduce the overbought RSI.

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batic420@batic420

@Tenbagger2024 I think I'll write another post about this when I really feel I'm on the right track 😅

In a nutshell:
First of all, I want to get my portfolio in order and sell the positions that I initially held out of ignorance (usually only in the €30 - €100 range) at a profit.

The remaining positions will then form the basis for my "new portfolio", the cornerstone will remain my $IWDA, which I will add a few individual stocks to in order to improve my performance a little.

Here I will focus on growth - for example in the "tech" sector with $AMD $VST $AMZN and so on. I'm also looking for stocks outside this sector and sometimes outside the USA (diversification). I actually visit your profile from time to time and take a look at your posts on such stocks 😉 - dividends aren't that important to me at the moment or I'm leaving them out for now (as I'm still young, I want to take more risk and go for growth).

But that's the short version. What I'm still working on is finding stocks that really interest me and that I want to buy, adapting savings plans to my new salary (I've finished my training) and thinking about which of my "old positions" to sell and when 😄

Thank you for asking though. As I said, I'll probably go into this in more detail in a separate post 😉

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batic420@batic420

@BamBamInvest
I have set myself price alerts, I am curious to see how the share develops - I find the company itself very exciting (the news lately looks promising 😉)

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BamBamInvest@BamBamInvest

@batic420 This is the way 👌

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Tenbagger2024@Tenbagger2024

@batic420
Thank you for your explanation,
From this I understood that the core is the World ETF which can become quite large through a savings contract.
That's why I wouldn't take additional positions from it, such as Amazon, as individual stocks.

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Chris@Multibagger

The price targets are all too low. 😎🚀 I say at least 40$ by the end of the year. Let's see who's right? The professionals or the man with the crystal ball😂😂

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BamBamInvest@BamBamInvest

@Multibagger if real fomo comes in here and the stock market and the Bitcoin price do not correct so strongly, much higher prices are possible here . And I'm sticking to my guns, if they also announce a colocation deal, there will be a revaluation anyway.

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Tenbagger2024@Tenbagger2024

@Multibagger
Man with the 🔮. Then ask the getquin prophet @Cato_Bamboo

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BamBamInvest@BamBamInvest

@Multibagger In my opinion, they will chase the price targets if we see rising prices by the end of the year. I don't need to tell you what happens if they announce a deal with a hyperscaler like $META $MSFT, $GOOGL or $ORCL ☺️

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Chris@Multibagger

@Tenbagger2024 My crystal ball was also right at $NVDA. Although that had more to do with experience and logical thinking.

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Tenbagger2024@Tenbagger2024

@Multibagger
I remain invested in Nvidia. That's what the 🔮 tells me

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BamBamInvest@BamBamInvest

@Tenbagger2024 Say a different topic because you are also looking well beyond the borders. I am looking for companies in the field of robotics that are growing strongly and are still somewhat smaller. Maybe even from Japan, I was once told by a patent attorney that Japan is already very advanced in terms of patents and various technologies, although I can no longer remember the sectors 😂. $RR is a friend of mine's investment. Which companies do you see at the forefront in this area, possibly including humanoid robots?

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Soprano@Soprano

I find it too uncertain. It can work, but it can also backfire. Data centers are all well and good, but it doesn't really make sense to rent them. Unless you don't expect to need the computing power in the medium term.

Basically, it's like a REIT on crack, so you have extreme short-term returns but also extreme cost of revenue because every 5-7 years everything is completely outdated and you have to modernize.

So there will probably be a spiral of more revenue -> more investment -> more revenue -> more investment and at some point you will have overinvested and it will knock you out.

It's therefore very risky to build up a lot of computing capacity if you don't have any super profitable applications yourself to guarantee utilization. And the logic that you can build an infinite amount of infrastructure and then Bitcoin will sort it out is of course also a cope.

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Klein-Anleger1@Klein-Anleger1

@Soprano Bitcoin mining is operated with the free capacities. That would be what you mean by "super profitable" applications...

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Soprano@Soprano

@Klein-Anleger1 Did you read the last sentence?

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Klein-Anleger1@Klein-Anleger1

@Soprano oops, must have missed it somehow 🙈 Sorry

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BamBamInvest@BamBamInvest

@Soprano I don't see it that way.
to rent them, because you can't start a project like this overnight without expertise, the necessary electricity contracts (which are becoming increasingly difficult) and locations that make sense, plus there is a kind of arms race here and the interference area of $META and co has to be served. This is much larger than the training area. That's also the reason why others like $WULF have a deal and $CIFR will probably be next. And yes, at some point it will probably come down to some kind of ride, but the demand in the cloud /AI area will not stop in the next few years and if there is no big tenant, then there will be many small ones. And $BTC and mining won't disappear overnight either.

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Soprano@Soprano

@BamBamInvest Well, the big players are quite capable of taking care of everything themselves. So a meta will probably not move in with Iris Energy, or what do you mean?

This Digital Realty-style server farm rental is particularly interesting for smaller players, but everything is risky there. So with Terawulf, it's really the optimal constellation that Google is involved and backing the deal, otherwise it would just be hot air. 3.7 billion over 10 years - Fluidstack has neither the 3.7 billion nor is it clear whether it will still exist in 10 years. But Google is doing it.

That's why I say yes. It's not completely unlikely that things will go the same way with Iris and that the Big Techs will put one of their protégés there and the share price will continue to rise. But yes, none of this is certain.

Ultimately, it's no different to real estate. You can just have a block of flats and in the best case scenario, the job center pays for everything and they don't care about the rent. But it can always happen that some rental nomads move in and tear your place apart.

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BamBamInvest@BamBamInvest

@Soprano Why not? Anything is possible here, especially as there is no comparable capacity and there is also a severe lack of capacity in the US. $META recently entered into a 20-year deal with Constellation Energy to supply AI Data Center. Also another deal with Sage Geosystems.

These deals show that Meta is focusing on diversified, sustainable energy sources in the long term in order to avoid bottlenecks in the power supply. Colocation (renting space in third-party data centers) would allow Meta to scale capacity quickly without having to build everything from scratch - saving a lot of time and capital.

So why shouldn't this be an option? And since capacities are limited and $META is not the only player on the market, many are already in talks and $IREN is in a position of power due to the capacities that are already and will soon be available and does not need to sell itself short.

In addition, $IRENuses 100% renewable energy (e.g. hydropower in Canada and renewable sources in Texas), which fits in perfectly with
fits perfectly with Meta's sustainability goals.

Childress with 750 MW, expandable, and West Texas with 1.4 GW , also fits geographically with Meta's focus on eastern US locations.

It would also mean low upfront costs for $META, as $IREN provides the infrastructure (e.g. cooling, power redundancy) and has flexibility in the placement of servers or GPUs.

Advantages for Meta:

Meta could utilize capacity in months instead of years, as $IREN sites are already under construction or operational.

IREN's 100% renewable energy reduces Meta's carbon footprint and fits with regulatory requirements

Colocation converts capex into opex, which eases Meta's balance sheet by converting capex into operating expenses, which also leads to positive tax and operating results. $IREN low cost structure (through Bitcoin mining experience) could enable competitive pricing.

Meta avoids power and land shortages that are increasing in the industry (e.g. delivery times for generators over 52 weeks.

I'm not saying it will $META, but there are some potential customers in the market.

Do a little research on available capacity of useful locations and data centers, colocation vacancy rates and power shortages in the US and you'll see what I mean.

I'm not so worried about that, but time will tell.

Mark my Words 😊 I think the game is only just beginning here ✌️

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financial_guru_1683@financial_guru_1683

@BamBamInvest my professional experience with data centers in Germany is that large hyperscalers only rent built to suit and do not sit in ready-made DCs that do not correspond to their design. How do you see the case here at $IREN?

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Soprano@Soprano

First of all, Iris is far too small to be relevant for Meta. Meta could cover a maximum of 5-10% of their computing needs if they were to use all of Iris' capacity at once.

Secondly, buying is always better than renting if you want to position yourself strategically in the long term. So you would either buy entire data centers from Iris or take over the company completely (which would certainly be better for both sides)

I'm not saying that Iris has no potential, but that I see it as speculative overall. There are already umpteen cryptominer / data center tenants and the question is how many are needed in the long term.

And all the "shovel manufacturers" for data centers were already played months ago, from electricity providers to cooling specialists - I think at some point some providers will simply be torn apart. In the meantime, I'm already going for "defensive" AI stocks because I know that the topic itself will remain a key technology, but I'm not sure whether the required computing power can continue to grow exponentially forever.

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BamBamInvest@BamBamInvest

@Soprano all reasonable doubts, but as you say yourself, if it should/can only cover a maximum of 10% of the computing needs and the need will certainly become greater than smaller, they will be dependent on capacities, because you don't start such projects from scratch overnight. And buying/taking over won't work because the founders won't allow it and can prevent it due to their shareholdings.

I think that they will definitely be able to utilize their free and future capacities, because there will definitely be demand and they are up to date here, the data centers are designed and equipped for this. And it also has to be $META and not just 1 hyperscaler. Perhaps it will be used differently with AI Cloud.

But as you rightly say, anything can happen and it can lead to overcapacity in the short term. But in the long term I don't think so. And everything I read is that the data centers are fully utilized everywhere, even in the colocation area, there is little available capacity and locations that can be used sensibly for this, etc.

We will see, but in my opinion we are only at the beginning here and there are a number of companies, sectors and areas that can use free capacity and will have to at some point.

But to raise another point, which the last earnings and the earnings call also showed, in my opinion they will not be dependent on a colocation deal either and are currently transforming themselves into a neo cloud provider and could become a hyperscaler themselves 😊.

I just see a lot of imagination and possibilities here, through the partnership with $NVDA and how they equip their data centers, they are best in class with performance, equipment and locations and no one has their capacity available.

I'm excited to see where it goes. ✌️

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BamBamInvest@BamBamInvest

@financial_guru_1683 First of all, I have to say that I don't come from this area, I just read a lot about it and sometimes I don't have the technical understanding for it when it goes into great detail. But in my opinion we are entering a new era in which more and more power is needed and the interference area alone is huge. I don't know what the situation is like in Germany at the moment, but when it comes to AI, robotics, cloud, etc., huge capacities will be needed in the future which are not yet available and the choice of locations and maintenance costs are probably not affordable for small companies either, or easier to rent from outside.

Air cooling/liquid cooling is also an issue here for the provision of services, if I understand this correctly.

Building up such capacities costs a lot of time and money and is becoming ever larger due to the volume of data. Many industries and sectors will be dependent on ever-increasing capacities, which is why I still see a lot of growth here. The way the whole thing is accelerating now, I don't believe in overcapacity either, as the build-up also takes time.

It's not just about colocation deals and the company is now positioning itself as a neo cloud provider.

It remains exciting and things usually turn out quite differently than expected. The fact that $IREN
recognized this early on and positioned itself, I think they have an advantage/ head start here.

But I'm happy if you correct me or broaden my horizons if you come from the industry, I like learning here and your views certainly add value. 😊

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Ver todas as 6 restantes respostas

investment_wizard_2286@investment_wizard_2286

14H

I also bought my first small tranche today. Let's see how it develops.
I'm still annoyed that I didn't buy in June. I opted for AMD back then...

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BamBamInvest@BamBamInvest

13H

@investment_wizard_2286 yes, it was already pretty overbought, the setback is good. Don't get angry, if it works out we will see much higher prices ✌️

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