Microsoft AI Cloud Deal and 2GW Growth Path Drive Bull Case for IREN

Core Viewpoint - Iren Ltd. is positioned as a leading player in the AI sector, with significant growth potential driven by a major deal with Microsoft and a robust development pipeline [1][4]. Group 1: Company Developments - Iren Ltd. has received a double upgrade from H.C. Wainwright analyst Mike Colonnese, moving from Sell to Buy with a price target of $80.00, indicating strong confidence in the company's future [1]. - The company has secured a $9.7 billion, five-year AI cloud deal with Microsoft, expected to generate approximately $1.94 billion in annual recurring revenue (ARR) once 200 MW of capacity is deployed [4]. - Iren has over 2 GW of incremental capacity planned to be energized by 2027, which is anticipated to facilitate growth in AI colocation services [5]. Group 2: Market Trends and Analyst Insights - Analysts predict that the AI infrastructure trade will remain a significant investment theme through 2026, driven by hyperscaler capital expenditure budgets and increasing demand for large-scale power [2]. - Colonnese highlights that Iren offers the most leveraged exposure among its coverage universe due to its substantial AI contract with a reputable counterparty, which is not fully reflected in the current stock price [3]. - The stock has experienced a correction of approximately 35% from its all-time highs in early November 2025, presenting a favorable entry point for investors [6].