What IREN (IREN)'s Landmark Microsoft AI Cloud Deal Means For Shareholders

Microsoft recently announced a multi-year US$9.7 billion agreement with IREN Limited to access Nvidia GB300 GPUs through phased deployments at IREN's Texas data center campus, supported by a related US$5.8 billion procurement agreement for GPUs and equipment with Dell Technologies. This development highlights IREN's successful shift from cryptocurrency mining to AI cloud infrastructure, positioning the company as a significant partner for global technology leaders seeking advanced, renewable-powered data center capacity. With IREN securing Microsoft as its largest customer, we'll explore how this major AI cloud contract impacts the company's long-term investment narrative.

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IREN Investment Narrative Recap

For current and prospective IREN shareholders, the key investment case centers on the company’s rapid pivot to AI cloud services, underpinned by high-margin contracts like its new US$9.7 billion Microsoft deal. This news provides important validation for IREN’s growth strategy, solidifies its largest short-term catalyst, AI infrastructure demand, but also intensifies the risk profile if capital expenditures start to outpace cash flows and financing flexibility in a fast-evolving market environment.

The recent Q1 earnings report is highly relevant given this context, showing US$240.3 million in revenue and US$384.6 million in net income, reflecting early financial benefits from the company’s AI and data center transition. With Microsoft now secured as IREN’s largest customer, the pace and funding of new data center and GPU deployments will be in sharper focus for investors watching top-line growth and balance sheet risks.

But amid excitement over contract wins, investors should remain alert to the potential for financial strain if...

Read the full narrative on IREN (it's free!)

IREN's narrative projects $1.5 billion revenue and $1.0 billion earnings by 2028. This requires 45.6% yearly revenue growth and an earnings increase of about $913 million from current earnings of $86.9 million.

Uncover how IREN's forecasts yield a $62.75 fair value, in line with its current price.

Exploring Other PerspectivesIREN Community Fair Values as at Nov 2025

Twenty-five retail investor fair value estimates from the Simply Wall St Community range from US$11 to US$137.11 per share. While many see strong tailwinds in AI cloud growth, some remain focused on the challenge of funding aggressive GPU and data center expansion, underscoring how opinions on IREN’s risk and reward profile still diverge widely.

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Explore 25 other fair value estimates on IREN - why the stock might be worth less than half the current price!

Build Your Own IREN Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your IREN research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision. Our free IREN research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate IREN's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include IREN.

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