Bernstein Cuts IREN Price Target After Shift from Bitcoin Mining to AI

Bernstein analysts have revised down their price target for IREN following the company's transition from Bitcoin mining operations to an AI-focused model. The report noted that the strategic transformation creates short-term uncertainty but offers long-term growth potential in the AI sector. Bernstein stated that IREN's reduction of current Bitcoin mining activities and pivot toward AI and high-performance computing (HPC) services will alter the company's revenue structure. Analysts emphasized that costs may rise and profitability could be pressured in the early stages of this transition. While lowering the price target for IREN, the investment bank added that the company's investments in AI infrastructure could create value over the long term. Bernstein particularly expects that the shift from energy-intensive mining operations to more efficient AI services could improve IREN's margins. IREN's strategic move is seen as a hedge against volatility in the cryptocurrency market. However, Bernstein warned that completing the transition will take time and that stock performance may be volatile during this period. This is not investment advice.