IREN Soars 20% on $9.7B Microsoft AI Cloud Deal: Can This Momentum Sustain?

Summary
• IREN surges 20.35% to $73.1151, hitting 52-week high of $75.73
• $9.7B GPU cloud contract with Microsoft drives premarket frenzy
• Turnover spikes to 28.48M shares, 11.21% of float
• Sector peers like Amazon (AMZN) rally 4.6% as AI infrastructure demand intensifies

IREN’s stock erupted in premarket trading after securing a landmark $9.7 billion AI cloud contract with Microsoft, leveraging NVIDIA’s GB300 GPUs. The deal, featuring a 20% prepayment and $5.8B in Dell equipment purchases, has thrust the former Bitcoin miner into the AI infrastructure spotlight. With turnover surging and technical indicators flashing bullish signals, investors are scrambling to assess whether this momentum can outlast the hype cycle.

Microsoft’s $9.7B Bet Validates IREN’s AI Cloud Prowess
IREN’s 20.35% intraday surge stems from a transformative partnership with Microsoft, granting the tech giant access to 750MW of GPU capacity at IREN’s Texas campus. The five-year contract includes a 20% prepayment and $5.8B in Dell equipment purchases, validating IREN’s transition from Bitcoin mining to AI infrastructure. CEO Daniel Roberts emphasized the deal’s strategic value, positioning IREN as a key player in hyperscaler AI cloud services. With Microsoft’s Jonathan Tinter calling IREN a 'strategic partner,' the deal underscores the critical role of energy-optimized data centers in addressing global GPU shortages.

Data Processing Sector Rises as AI Infrastructure Demand Accelerates
The Data Processing & Outsourced Services sector gained traction alongside IREN’s surge, with Amazon (AMZN) climbing 4.6% as AI infrastructure demand intensifies. While IREN’s 20% move outpaces the sector’s broader rally, the $9.7B Microsoft contract highlights a broader trend: hyperscalers are aggressively securing GPU capacity through partnerships with energy-optimized providers. This aligns with 2025 outsourcing trends emphasizing hybrid models and AI-powered data extraction, suggesting IREN’s vertical integration could offer a competitive edge over traditional BPO players.

Options Playbook: Leveraging IREN’s Volatility with Gamma-Driven Contracts
• RSI: 46.28 (neutral) • MACD: 4.02 (bearish signal) • 200D MA: $19.53 (far below price) • Bollinger Bands: Price at $73.12 (above upper band of $69.31)

IREN’s technicals suggest a short-term bullish trend amid high volatility. The stock has pierced its 52-week high of $75.73, with RSI hovering in neutral territory. However, MACD’s bearish crossover and the 200D MA’s distance from current price indicate potential consolidation. For options traders, the key is to target contracts with high gamma and moderate delta to capitalize on price swings. Here are two top picks:

• IREN20251107C73
- Type: Call
- Strike: $73
- Expiry: 2025-11-07
- IV: 170.62% (high volatility)
- Leverage: 13.97%
- Delta: 0.5042 (moderate sensitivity)
- Theta: -0.8258 (rapid time decay)
- Gamma: 0.02787 (high sensitivity to price changes)
- Turnover: $808,888
- Payoff at 5% upside: $1.66 (max(0, 76.77 - 73))
- This contract offers explosive potential if IREN breaks above $73, with high gamma amplifying gains as the stock approaches the strike price.

• IREN20251107C75
- Type: Call
- Strike: $75
- Expiry: 2025-11-07
- IV: 169.32% (high volatility)
- Leverage: 16.71%
- Delta: 0.4494 (moderate sensitivity)
- Theta: -0.7915 (rapid time decay)
- Gamma: 0.02786 (high sensitivity to price changes)
- Turnover: $1,054,062
- Payoff at 5% upside: $1.66 (max(0, 76.77 - 75))
- This contract balances leverage and liquidity, ideal for a breakout above $75. High gamma ensures gains accelerate as the stock nears the strike.

Action Alert: Aggressive bulls should consider IREN20251107C73 into a test of $75.73 (52-week high). If IREN sustains above $73, the 73-strike call could see exponential gains as gamma amplifies price sensitivity.

Backtest IREN Stock Performance
It looks like the event-level back-test failed because the engine did not receive any valid event dates (the list was empty), so the statistics routine could not compute returns and threw an internal error.What probably happened • After scanning IREN’s daily price history from January 2022 to 3 Nov 2025, the script did not find any sessions whose intraday high was ≥ 20 % above the previous day’s close. • With zero qualifying dates, the event-back-test engine produced empty return arrays, which triggered the “min() arg is an empty sequence” exception you saw.How we can proceed 1. Double-check the threshold – you may want to confirm whether a slightly lower spike level (e.g., 15 % or 10 %) is acceptable. 2. Expand the time window further back (before 2022) if historical data are available. 3. If the 20 % criterion is non-negotiable, we can simply report that no such events occurred in the requested window (which in itself is an informative finding).Let me know which option you prefer, or if you would like to explore a different performance trigger.

IREN’s AI Cloud Breakthrough: A New Era or a Volatility Play?
IREN’s 20% surge on the Microsoft contract signals a pivotal shift in its business model, but sustainability hinges on execution. The stock’s technicals suggest short-term bullish momentum, though MACD’s bearish crossover warns of potential pullbacks. Investors should monitor the $73 support level and the 52-week high of $75.73. Meanwhile, the sector’s strength—led by Amazon’s 4.6% gain—indicates broader AI infrastructure tailwinds. For now, the 73- and 75-strike calls offer high-gamma plays to capitalize on volatility. Watch for $75.73 breakout or a retest of $70.25 (intraday low) to gauge the move’s durability.