In a notable turnaround for the AI data center trade, both Cipher Mining and IREN experienced significant gains on Monday. This resurgence comes in the wake of favorable evaluations from analysts at JPMorgan, which have buoyed investor sentiment after a challenging month for these companies, traditionally known for cryptocurrency mining.
JPMorgan analysts indicated a positive shift in their outlook, revising their price targets and ratings in light of recent developments. They highlighted a notable surge in “deal activity” that underscores the potential of crypto miners transitioning into high-performance computing (HPC) power providers. This transformation has gathered momentum this year, amidst fluctuating cryptocurrency prices and emerging concerns over AI’s market stability.
In their report, the analysts addressed significant contracts secured by Cipher Mining and IREN, noting that since the end of September, both firms have entered long-term agreements—spanning five to fifteen years—across over 600 megawatts of critical IT capacity, amounting to more than $19 billion in contracted revenue. This strategic pivot suggests enhanced prospects for miners as they adapt their operational capacities towards HPC applications.
The positive remarks led to an upgrade for Cipher Mining, with JPMorgan adjusting their rating to “overweight,” equivalent to a “buy” recommendation. Alongside this, they raised the company’s December 2026 price target from $12 to $18, reflecting increased confidence in its future performance.
Meanwhile, another firm in the sector, CleanSpark, also received an upgrade to “overweight” from “neutral,” though its price target remains unchanged at $14. In contrast, IREN’s price target was elevated from $28 to $39, though the analysts maintained an “underweight” rating on the stock due to concerns about high valuations.
As the market continues to evolve, the successful pivot of these crypto mining companies to focus on high-performance computing positions them to potentially capitalize on growing demand in the tech sector, suggesting a dynamic shift in operational strategies within the industry.
