Key insights
- Goldman Sachs maintained a Neutral rating on Iren following a $1.6 billion deal with Dell for NVIDIA's AI systems. While the deal is significant for Iren's AI cloud capacity, the analyst's rating suggests limited immediate upside or downside for the stock. The news primarily impacts Iren and its suppliers, with broader market influence being minimal.
Investing.com - Goldman Sachs reiterated a Neutral rating and $50.00 price target on Iren Ltd. (NASDAQ:IREN) following the company’s equipment purchase agreement.
Iren entered into a $1.6 billion purchase agreement on May 26 with Dell for air-cooled Blackwell based systems as part of its previously announced five-year $3.4 billion AI cloud contract with NVIDIA. The chip giant, valued at $5.2 trillion, remains undervalued according to InvestingPro analysis and appears on the platform’s most undervalued stocks list, with revenue surging 71% over the last twelve months. The Blackwell systems will be deployed across Iren’s existing sites at the company’s Childress, Texas campus with commissioning targeted for early 2027.
The NVIDIA cloud deal is for 60 MW of capacity, which would result in approximately 45 MW of critical IT load, assuming a PUE ratio of approximately 1.3. Goldman Sachs estimates Iren is acquiring approximately 26,000 B200 GPUs, assuming approximately $500,000 per DGX B200 rack, which is consistent with the disclosed $1.6 billion purchase price.
The calculation is based on 45MW divided by 14kW per DGX B200 rack multiplied by eight GPUs per rack. Goldman Sachs noted this is a lower purchase price than the firm previously expected.
Goldman Sachs analyst Michael Ng maintained the Neutral rating and $50.00 price target on the stock. For deeper insights into IREN and access to comprehensive Pro Research Reports covering 1,400+ US equities, visit InvestingPro.
In other recent news, Nvidia has reported significant developments that could impact investors’ perspectives. Argus raised its price target for Nvidia to $270, citing the company’s fiscal first-quarter 2027 results, which surpassed consensus estimates. Nvidia’s quarterly revenue showed double-digit percentage growth, and non-GAAP earnings per share increased in low-triple-digit percentages. Meanwhile, Truist Securities increased its price target to $307, highlighting Nvidia’s strong first-quarter results and optimistic second-quarter outlook. Cantor Fitzgerald reiterated an Overweight rating with a $350 price target, noting Nvidia’s 15th consecutive quarter of exceeding consensus expectations. Nvidia’s guidance for April and July revenue and earnings per share also surpassed estimates, set at $173 billion and $3.94, respectively. Tigress Financial Partners raised its price target to $425, emphasizing Nvidia’s role in AI infrastructure growth. Additionally, Nvidia unveiled its new Constellation campus in Taipei, announcing plans for a substantial investment of up to $150 billion annually in Taiwan.
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