IREN's Massive Microsoft Pact: Could This AI Powerhouse Triple to $200?

"The company's recently unveiled $9.7 billion multi-year contract with Microsoft ( NASDAQ:MSFT ) to provide high-performance GPU cloud computing is seen by many as a transformational agreement that accelerates the changing trajectory of the crypto outfit. The deal centers on deploying Nvidia ( NASDAQ:NVDA ) Blackwell chips at IREN's 750-megawatt facility in Childress, Texas, with phased rollouts through 2026. Shares rocketed more than 30% in the following session, closing just under $68 per share, amid surging trading volume."

"The Microsoft agreement locks in roughly $1.94 billion in annual revenue for IREN over five years, including a substantial prepayment from the tech giant to fund initial setups. IREN plans to spend $5.8 billion on GPUs and related gear, sourced partly from Dell Technologies ( ), to support over 200 megawatts of critical load in liquid-cooled data centers. This builds on IREN's 3-gigawatt secured power portfolio across North America, positioning it as a go-to provider for AI infrastructure."

"Analysts quickly piled on, with Bernstein hiking its price target to $125 from $75 per share - just one month after setting the previous price - citing the pact as proof of IREN's AI credentials. Roth Capital followed suit, lifting its target to $94 from $82 per share, while another firm pushed to $142. This enthusiasm stems from the deal's scale, validating IREN's shift to hyperscaler partnerships and tapping into explosive AI demand."

IREN pivoted from Bitcoin mining into AI cloud services by securing a $9.7 billion multi-year agreement with Microsoft to deploy Nvidia Blackwell GPUs at its 750-megawatt Childress, Texas facility with phased rollouts through 2026. Shares surged over 30% on the news amid heavy trading. The deal locks in roughly $1.94 billion in annual revenue over five years and includes a substantial prepayment to fund initial setups. IREN plans to spend $5.8 billion on GPUs and related gear to support over 200 megawatts of liquid-cooled data-center load, building on a 3-gigawatt secured power portfolio across North America.

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