1 Year Into the Microsoft Deal, IREN Is Delivering and a Rally May Follow Soon

Just over a year since its Microsoft deal, IREN is proving itself in the AI infrastructure business, signaling potential bullishness ahead. The company's collaboration with Microsoft led to a $9.7 billion cloud services agreement, with 20% of the contract paid upfront. This partnership is expected to generate nearly $1.94 billion in annualized run-rate revenue once fully commissioned.

IREN has already delivered the first of four planned Horizon AI cloud deployments for Microsoft, a 50-megawatt liquid-cooled installation in Texas. Nvidia has recognized IREN as Exemplar Cloud after testing its GB300 NVL72 setup, confirming the infrastructure's ability to handle demanding AI workloads. Looking ahead, IREN aims to expand its capacity from 3 megawatts to 1.2 gigawatts in just two years, a hundredfold increase.

Additionally, the company has secured $2.8 billion in new contracts with AI developers, pushing its annualized revenue target above $4 billion, with around 85% already under contract.