"But the sharp selloff appears to have largely run its course. More importantly, the fundamental catalyst that can propel IREN's stock significantly higher remains firmly intact: the transformative $9.7 billion, five-year AI cloud contract with Microsoft ( NASDAQ:MSFT ) announced earlier this month. It validates IREN's strategy, secures massive upfront cash, and positions the company as a go-to provider in a market starving for immediately available, renewable energy-powered compute."
"When Microsoft disclosed it was paying nearly $10 billion for priority access to tens of thousands of Nvidia ( NASDAQ:NVDA ) GB300 GPUs hosted in IREN's liquid-cooled data centers (primarily at its 750 megawatt (MW) Childress, Tex. site), the market's initial reaction sent shares soaring over 25% intraday to a new all-time high. Yet as sector-wide concerns mounted - contagion fears from Applied Digital's ( NASDAQ:APLD ) recent debt offering, uncertainty ahead of Nvidia earnings today , and macro jitters - IREN's gains evaporated."
AI infrastructure stocks have weakened amid valuation concerns, hyperscaler spending uncertainty, and rotation away from growth names. IREN, a renewable-powered data center operator that pivoted from Bitcoin mining to AI cloud computing, saw shares plunge about 36% from an early-November peak. Microsoft committed $9.7 billion over five years for priority access to tens of thousands of Nvidia GB300 GPUs hosted primarily at IREN's 750 MW Childress site, providing roughly $1.9 billion annualized run-rate and a 20% prepayment that delivers immediate cash and reduces project risk. The deal validates IREN's strategy and strengthens its market positioning for renewable-powered AI compute.
Read at 24/7 Wall St.
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