IREN stock soars after $2.8B AI Cloud contracts, revenue boost

IREN stock soared 17% after $2.8B in new AI Cloud contracts, raising its 2026 revenue target to $4B, with 85% already secured and major tech clients on board.

IREN shares surged by up to 17% following the announcement of $2.8 billion in new multi-year AI Cloud contracts. The company raised its 2026 annualized AI Cloud revenue target from $3.7 billion to over $4 billion, with approximately 85% of this revised target already secured under contract. Major clients include Microsoft, NVIDIA, Perplexity, and Figure AI. IREN is rapidly scaling its AI Cloud infrastructure, expanding from 3MW to 480MW of capacity within a year, and aims to reach 1.2GW by 2027. Recent agreements feature customer prepayments covering about 45% of GPU capital expenditures, which helps reduce cash burn and financial risk. The news also boosted related ETFs and underscored IREN's growing influence in the AI Cloud sector. However, risks remain if contracts are not renewed or if AI infrastructure demand declines, potentially impacting future revenue and stock performance.