TLDR
- IREN signed a $9.7 billion contract with Microsoft to provide 200 megawatts of AI data center capacity
- Cantor Fitzgerald raised IREN’s price target to $142 from $100, Bernstein lifted it to $125 from $75, and Roth Capital increased it to $94 from $82
- The deal could generate $2 billion in annual recurring AI cloud revenue for IREN by 2027 on top of $500 million from existing operations
- IREN stock jumped over 5% following the announcement and is up 547% year-to-date
- The Microsoft deal uses only 10% of IREN’s total power capacity, leaving room for expansion with Microsoft or other hyperscalers
IREN signed a $9.7 billion GPU cloud services contract with Microsoft on November 3. The deal involves supplying 200 megawatts of AI data center capacity to the tech giant.
The stock jumped over 5% following the announcement. IREN shares were trading at $71.35, marking a 547% gain year-to-date.
Cantor Fitzgerald analyst Brett Knoblauch raised his price target on IREN to $142 from $100. That represents a 42% increase and implies more than 100% upside from the previous close of $67.75.
Knoblauch has been bullish on the stock since this past summer when it traded around $10. He called the Microsoft partnership “game-changing” for the company.
Bernstein analyst Gautam Chhugani hiked his price target to $125 from $75. That’s a jump of more than 65%.
Chhugani said the deal cements IREN’s position as one of the few infrastructure players owning its own power assets. He maintained his outperform rating on the stock.
Roth Capital analyst Darren Aftahi raised the price target from $82 to $94. All three analysts reiterated their outperform ratings.
Revenue Projections
The Microsoft contract could generate $2 billion in annual recurring AI cloud revenue for IREN by 2027. That comes on top of roughly $500 million from existing operations.
Chhugani now forecasts $2.5 billion in AI cloud revenue by 2027. His previous estimate was $1.1 billion.
The analyst values IREN’s Sweetwater site at $5 million per megawatt based on recent merger and acquisition multiples. IREN’s 2.9 gigawatt portfolio allows it to expand in line with demand without relying on co-location partners.
This structure should boost profitability compared to competitors like CoreWeave and Nebius. Those companies depend more heavily on partnerships for their infrastructure.
Capacity for Growth
The Microsoft deal taps only about 10% of IREN’s total power capacity. The company has assets across British Columbia and Texas.
This leaves room to scale further with Microsoft or other hyperscalers. The unused capacity represents future revenue opportunities.
IREN co-founder and co-CEO described the partnership as a milestone that highlights the strength of their vertically integrated AI cloud platform. Microsoft’s business development and ventures president Jonathan Tinter praised IREN’s expertise in building and operating a fully integrated AI cloud.
Founded in 2019, IREN started as a Bitcoin mining company. The company has pivoted toward AI cloud services as global demand has risen.
IREN chief commercial officer Kent Draper said this wasn’t really a pivot. He stated the AI cloud strategy has been part of the plan from day one.
Market Performance
Shares declined nearly 5% early Tuesday during a broader market downturn. Nasdaq futures dropped 1.5% and Bitcoin threatened to fall below the $100,000 level.
The stock has still risen 12-fold from its April low. Year-to-date gains stand at 547%.
IREN is scheduled to release its Q3 2025 earnings report on November 6.
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