IREN Stock Surges on Major Microsoft AI Partnership

A landmark $9.7 billion agreement with Microsoft has propelled shares of IREN, marking a pivotal shift in the company's strategic direction. The former cryptocurrency miner is now positioning itself as a critical infrastructure partner in the artificial intelligence sector, a transformation that has captured significant market attention and driven a sharp price increase.

The core of the recent rally is a fundamental shift in IREN's business model, anchored by a five-year partnership with tech giant Microsoft. Valued at approximately $9.7 billion, the deal centers on providing AI computing capacity, including access to sought-after Nvidia hardware. This move transitions the company's revenue stream from the volatility of crypto mining to predictable, recurring cash flows.

To support its ambitious growth targets, IREN aims to achieve an annual recurring revenue (ARR) of $3.4 billion by the end of 2026. A crucial aspect of the deal structure for near-term liquidity is a substantial upfront payment of 20%, which will directly fund the necessary expansion of its hardware infrastructure.

Wall Street Validation and Market Reaction

The operational news has been accompanied by growing recognition from major financial institutions. Goldman Sachs has initiated coverage on IREN (ISIN: AU0000185993). Analyst Michael Ng issued a "Neutral" rating with a $39.00 price target.

Should investors sell immediately? Or is it worth buying IREN?

While not an outright buy recommendation, the market interpreted this coverage as a significant validation of the company's standing in the competitive data center landscape. Trading activity on Friday reflected this sentiment, with the share price climbing past the stated target amid heavy volume. Over 354,000 options contracts changed hands, underscoring the heightened investor interest.

Sector-Wide Reassessment of AI Infrastructure

IREN's performance is part of a broader sectoral reevaluation. Investors are increasingly acknowledging that demand for specialized AI data center capacity continues to outstrip supply. This trend was mirrored in the simultaneous double-digit gains of competitor Applied Digital.

With a recently secured $2.3 billion financing package and the Microsoft partnership, IREN's balance sheet appears strengthened for its aggressive growth strategy. The company's goal to increase its hashrate to 50 EH/s by 2027 now seems more attainable given the improved liquidity position.

Technical Outlook and Analyst Consensus

Friday's strong close has improved the technical picture considerably. The average analyst price target for a 12-month horizon sits above $80, suggesting a potential doubling from current levels. However, the future share price trajectory is now heavily dependent on the flawless execution of its expansion plans. The market's high expectations are unlikely to tolerate any delays in building out the promised computing capacity.

Key Price Data & Metrics

• Friday Closing Price: €33.98
• Daily Change (Friday): +11.32%
• 7-Day Change: -0.53%
• 30-Day Change: -14.51%
• Year-to-Date (YTD) Change: +233.84%
• 12-Month Change: +208.39%
• 52-Week High: €66.51 (05/11/2025)
• Distance from 52-Week High: -48.90%
• 52-Week Low: €4.80 (16/04/2025)
• Distance from 52-Week Low: +608.09%
• 50-Day Moving Average: €43.47
• Distance from 50-Day MA: -21.83%
• 100-Day Moving Average: €38.12
• 200-Day Moving Average: €23.77
• Distance from 200-Day MA: +43.00%
• RSI (14-Day): 51.2
• Volatility (30-Day, annualized): 100.03%