Microsoft AI Cloud Deal and 2GW Growth Path Drive Bull Case for IREN

Firm analysts expect the AI infrastructure commercialized to proceed serving arsenic a large concern taxable successful 2o26. Factors driving this momentum see hyperscaler capex budgets, accelerating request for near-term entree to large-scale power, and affirmative capitalist sentiment.

Colonnese believes that IREN offers the astir leveraged vulnerability crossed its sum beingness since it has already secured 1 of the largest AI contracts to day among BTC miners with a blue-chip counterparty. This, helium noted, isn’t afloat priced into shares.

Meanwhile, IREN has besides secured a $9.7B, five-year AI unreality woody with Microsoft which the steadfast anticipates to beryllium afloat monetized by the extremity of 2026 and make an estimated $1.94B successful ARR erstwhile 200 MW of captious IT capableness are deployed astatine Childress information center.

Firm expert besides highlighted however IREN has much than 2GW of incremental capableness to beryllium energized by 2027, offering the institution a pathway for AI colocation growth. The stock’s correction from its all-time highs successful aboriginal November presents an charismatic accidental for investors.

“We would not beryllium amazed to spot the institution denote caller AI contracts successful 2026 connected a information of this secured capacity. Meanwhile, the banal has corrected by ~35% from its all-time highs successful aboriginal November 2025, presenting an charismatic introduction constituent for investors, arsenic we spot it. We besides enactment that the institution raised $2.3B of caller superior via convertible offerings past month, adding to its $1.8B currency presumption (as of the extremity of October 2025) to enactment the buildout of its AI information centers astatine Childress.”

Iren Ltd. (NASDAQ:IREN) operates 100% renewable energy-based information centers crossed Australia and Canada.

While we admit the imaginable of IREN arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None.