IREN Ltd. saw its stock climb more than 12% in Thursday trading after the company announced two major milestones: the delivery of the first phase of its Microsoft cloud deployment and the achievement of Nvidia Exemplar Cloud status. The news underscores IREN's progress in establishing itself as a key player in AI computing infrastructure.
Horizon 1 delivered under Microsoft deal
IREN said it has completed Horizon 1, the first of four planned 50-megawatt direct-to-chip liquid-cooled AI cloud deployments for Microsoft at its Childress, Texas campus. This is part of a five-year, $9.7 billion cloud services agreement signed in November 2025. The company highlighted that its vertically integrated model—covering design, engineering, and construction—enabled rapid delivery.
“Delivering Horizon 1 demonstrates the strength of our vertically integrated model and our ability to execute complex AI infrastructure projects at speed and scale,” said Daniel Roberts, Co-Founder and Co-CEO of IREN. He also thanked the more than 3,000 team members involved. The remaining three Horizons are expected to be completed later this year.
Nvidia Exemplar Cloud status
In addition to the Microsoft milestone, IREN announced that Horizon 1 has earned Nvidia Exemplar Cloud status after testing of its Nvidia GB300 NVL72 deployment. This designation confirms that the infrastructure meets Nvidia's performance and operational standards for next-generation AI systems.
The company remains on track to expand its AI cloud platform to 480 MW of gross capacity in 2026, with plans to reach 1.2 gigawatts by 2027.
Broader AI infrastructure optimism
IREN's stock has rallied roughly 22% over the past five sessions, buoyed by positive industry developments. Earlier this week, Nvidia—a major IREN shareholder—announced a $500 billion financing initiative with BlackRock and Blackstone to support AI infrastructure builders. This could improve access to capital for companies like IREN that require substantial funding for GPU data centers.
Investor sentiment has also been lifted by other major AI contracts. Riot Platforms announced a $9 billion deal with Anthropic, while CoreWeave reported Q2 revenue of $2.6 billion, more than double year-over-year, and a backlog of $104 billion.
Analyst views remain bullish
Wall Street analysts largely maintain a positive outlook on IREN. Bernstein SocGen Group reiterated an Outperform rating with a $100 price target, implying over 100% upside. The firm argues that despite skepticism about former Bitcoin miners transitioning to AI cloud, IREN's model could generate $10–$20 million per megawatt, versus $2–$2.5 million for traditional colocation leasing.
Other brokerages have also reaffirmed positive ratings: HC Wainwright holds a Buy with a $90 target, Compass Point a Buy with $105, and Citizens a Market Outperform with $80. Goldman Sachs remains Neutral with a $50 target, and Needham rates the stock Hold.
IREN recently announced new multi-year AI cloud contracts worth $2.8 billion and raised its 2026 year-end AI Cloud annual recurring revenue target to over $4 billion, with about 85% already contracted. Investors are now watching for the company's earnings report, due in about a month.
This article is for informational purposes only and does not constitute financial advice.
