Analysts project over 100% upside potential for IREN stock driven by increasing demand for AI compute infrastructure.

IREN Limited (NASDAQ:IREN) is one of the 7 most oversold data center stocks to invest in, with over 70% of covering analysts, as of April 1, 2026, remaining bullish on the company. The consensus price target of $80 implies an upside of about 130% amid growing demand for AI-linked compute infrastructure.

H.C. Wainwright reaffirmed its "Buy" rating and $80 price target on March 5, 2026, following IREN Limited's most recent GPU purchases. The investment firm stated that construction at its Childress and Mackenzie data center remains on schedule, and noted that IREN Ltd.'s $3.5 billion hardware acquisition, completed before obtaining compute contracts, indicates robust underlying demand.

As IREN Limited remains focused on obtaining favorable financing for currently uncontracted hardware, the investment firm identified higher near-term dilution risk amid the company's plans to potentially sell up to $6 billion in new shares. In the short term, this adds pressure, especially as capital intensity rises throughout the data center industry.

According to H.C. Wainwright, IREN Limited's 2026 outlook turns less risky as a result of these developments, with management's increased guidance bolstering confidence in expanding its AI Cloud division beyond its previous projections. IREN Ltd. operates high-performance, renewable energy-powered data centers specializing in Bitcoin mining and artificial intelligence cloud services, providing infrastructure including GPU-based computing to support AI, machine learning, and high-performance computing for large-scale clients.