"IREN ( NASDAQ:IREN) creates AI data centers that store chips and have the necessary gigawatts to power those chips. The company announced a 5-year, $9.7 billion deal with Microsoft ( NASDAQ:MSFT) in November. The deal covers 200 megawatts. Since IREN has a pipeline of roughly 3,000 megawatts, it will soon have the capacity to support 14 additional deals like the Microsoft one, resulting in substantial annual recurring revenue."
"This is a big deal for investors who have heard about IREN for the first time, but investors who have known about the stock for a while are looking for the next catalyst. Competitor Applied Digital ( NASDAQ:APLD) provided bullish news by confirming that it signed a deal with another hyperscaler in its Q2 FY26 press release and said that they are in "advanced discussions with another investment-grade hyperscaler across multiple regions.""
AI chipmakers attract most attention, but other AI inputs and infrastructure also matter and can create large investment opportunities. Some small-cap AI stocks trade at bargain prices and have potential for significant gains. IREN builds AI data centers with gigawatts of power capacity and announced a five-year, $9.7 billion, 200-megawatt deal with Microsoft. IREN’s pipeline of roughly 3,000 megawatts could support about 14 similar deals and generate substantial recurring revenue. Applied Digital confirmed a hyperscaler deal and reported being in "advanced discussions with another investment-grade hyperscaler across multiple regions." IREN's Sweetwater 1 project is set to be energized in April 2026 with 1.4 gigawatts.
Read at 24/7 Wall St.
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