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

Core Insights - IREN has shifted focus from Bitcoin mining to AI cloud services, highlighted by a $9.7 billion multi-year contract with Microsoft for high-performance GPU cloud computing [1][4] - The partnership is expected to generate approximately $1.94 billion in annual revenue for IREN over five years, with significant initial funding from Microsoft [4][5] - The deal involves deploying Nvidia Blackwell chips at IREN's facility in Texas, with phased rollouts planned through 2026 [2][4] Financial Impact - IREN's stock surged over 30% following the announcement, closing just under $68 per share [2] - Analysts have raised price targets significantly, with Bernstein increasing its target to $125 from $75, and Roth Capital raising its target to $94 from $82 [3][6] - The company plans to invest $5.8 billion in GPUs and related equipment, enhancing its capabilities in AI infrastructure [4][5] Strategic Positioning - The Microsoft agreement positions IREN as a key player in the AI infrastructure market, leveraging its existing power portfolio of 3 gigawatts across North America [4][5] - The deal reflects a broader trend of tech companies outsourcing AI compute needs to specialized firms to avoid supply chain issues [5] - Co-CEO Daniel Roberts emphasized the milestone as a gateway to new growth opportunities, showcasing IREN's integrated approach to data centers and GPU management [5][6]