IREN Stock Soars 24.66% on $9.7B Microsoft AI Pact, $5.8B Dell GPU Deal

The share price rose to its highest level so far this month, with an intraday gain of 24.66%.

The surge was driven by IREN’s $9.7 billion AI infrastructure partnership with Microsoft, which includes a 20% prepayment to fund expansion. The agreement positions IREN as a key supplier of NVIDIA GB300 GPUs for Azure’s AI cloud, enabling Microsoft to double its data center capacity within two years. Complementing this, a $5.8 billion GPU supply deal with Dell ensures IREN can meet the scale of Microsoft’s demand, while also securing its position in a supply-constrained market.

IREN’s Q2 2025 financial results underscore its transformation, with revenue rising 223.31% year-over-year to $180.64 million and net income surging 453.47% to $95.55 million. Operating margins expanded to 52.89%, reflecting improved efficiency and high-value contracts. The company’s Texas Childress campus, with 750MW of power capacity, is central to its AI infrastructure plans, including liquid-cooled data centers to support 200MW of critical IT load by 2026.

IREN’s pivot from Bitcoin mining to AI cloud computing has redefined its valuation, trading at a premium multiple of 172.79. Analysts highlight its vertically integrated model—combining GPU access, renewable-powered data centers, and strategic partnerships—as a competitive edge. However, risks include high leverage, with liabilities rising to $1.12 billion, and execution challenges in scaling AI infrastructure. Despite mixed outlooks, the stock’s momentum reflects investor confidence in its role within the AI arms race.