IREN Stock Falls Even as JPMorgan Goes Bullish TipRanks Tue, November 10, 2026 at 5:44 PM EST 3 min read IREN -5.14% MSFT -1.85% MSF 4338 NVDA -4.85% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Shares in AI data center operator IREN Limited (IREN) fell about 4% to around $21 on Tuesday morning. This came even after four-star JPMorgan analyst Richard Choe assigned the stock a Buy rating. Choe is bullish on IREN's fiscal Q1 2027 earnings, which showed AI cloud revenue surged 182% quarter-over-quarter to $200 million.
According to Choe, IREN's delivery of the first phase of its four-part data center project with Microsoft (MSFT) helped to fuel AI cloud revenue growth. In August, IREN announced that Microsoft had accepted Horizon 1, a 50MW facility, built under its $9.7 billion contract with the tech giant.
Defending the Buy rating, Choe also pointed out that IREN continues to earn higher prices for its GPUs. Notably, during the earnings call, IREN saw prices for its three-year deals rise 11% quarter-over-quarter. Its five-year deals also rose 12%.
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After the quarter ended, IREN also signed a five-year deal with a customer at $22 million per megawatt. The customer agreed to an upfront payment of 90% to cover the cost of the required GPUs.
IREN also announced a short-term deal at $40 million per megawatt. It also leased out its cluster of older Nvidia (NVDA) H100 chips at double its previous price.
Meanwhile, despite the Buy rating, Choe trimmed his price target for IREN shares by 15%, from $65 to $55. Still, the new target implies about 157% upside.
The analyst believes that the pace of IREN's capacity development is a reason to be cautious. He also pointed to how the company funds its operations as another factor.
The former comes as Microsoft tightens oversight of some data center projects being built on its behalf by neocloud companies. The latter follows a recent selloff in stocks exposed to the AI trade, driven by worries about high borrowing costs.
Still, Choe noted that "post-quarter signings and high prepayment maintain momentum and reduce risk."
As a four-star analyst, Choe ranks #3,120, placing in the top 25% of the more than 12,000 tracked on TipRanks.
He covers the real estate industry across the U.S. and Canada. The analyst boasts a 57% success rate. His ratings have generated an average return of 6.60% for investors.
On Wall Street, analysts have a Moderate Buy consensus rating on IREN's shares. This reflects eight Buys and three Holds assigned over the past three months.
However, the average IREN price target of $56.50 implies about 169% upside ahead (see IREN stock forecast here).
