IREN’s Strategic Pivot to AI Infrastructure Captivates Investors

Shares of IREN are experiencing a significant rally, driven by a clear strategic pivot toward artificial intelligence infrastructure and a wave of upgraded assessments from financial analysts. The company's core plan involves shifting its operational focus from Bitcoin mining to providing cloud services tailored for AI workloads.

The cornerstone of IREN's new direction is a multi-billion dollar agreement with Microsoft to supply AI infrastructure. Recent corporate communications have prominently highlighted the company's AI cloud platform alongside its extensive portfolio of power generation and energy capacity. This pairing is viewed as a critical advantage, as the vast computational demands of AI applications require a massive and reliable energy supply—a resource IREN is positioning to provide.

Key developments underpinning the recent share price movement include:
* A planned expansion of energy capacity, with the Sweetwater-1 substation scheduled to be energized in April 2026.
* A substantial 25.6% advance in the share price between January 9 and January 16, 2026.
* Exceptionally high trading volume during this period, with key days seeing over 53 million shares change hands.
* Multiple analyst upgrades that have served to validate the company's strategic shift.

Analyst Upgrades Provide Substantial Momentum

The current surge is being fueled in part by revised outlooks from Wall Street firms. H.C. Wainwright upgraded IREN to a "Buy" rating, assigning a new price target of $80. The firm cited the company's increasing focus on the high-growth AI sector as the primary rationale.

Should investors sell immediately? Or is it worth buying IREN?

Furthermore, Bernstein has identified IREN as a top AI pick for 2026. Such endorsements reinforce the market's perception that the strategic realignment is credible and that future earnings potential is being reassessed upward.

High Volume Confirms Broad Market Interest

The sharp price appreciation has been accompanied by a notable spike in trading activity. The elevated volume levels signal widespread market interest and a tangible shift in sentiment, as investors increasingly respond to the company's emerging profile as an AI data center play.

This indicates the current movement is not merely a thin-volume price spike but reflects a substantive re-rating supported by heavy trading. The critical factors to watch in the coming months will be the progress in building out the AI infrastructure and the successful activation of the Sweetwater-1 facility in April as planned.