Why Iren Limited Stock Soared Today

Key Points

• An AI infrastructure peer just announced a deal worth more than the company's entire market cap.

• Iren shares have more than tripled so far in 2025.

• Iren has been rapidly procuring Nvidia GPUs.

• 10 stocks we like better than Iren ›

Iren Limited (NASDAQ: IREN) stock has been quietly making shareholders richer this year. Today's jump came after a big deal was announced in the artificial intelligence (AI) cloud infrastructure space.

Today, Iren shares spiked higher by 15.8% as of 3:08 p.m. ET. But Iren stock has been stealthily moving higher all year. Shares of the vertically integrated data center company have more than tripled year to date.

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The demand for AI infrastructure is soaring

The AI cloud infrastructure space is gaining headlines today after a huge deal between Microsoft and AI infrastructure company Nebius Group was announced. The deal could be worth up to $19.4 billion for Nebius, which had a market cap of just about $15 billion yesterday.

Previously known as a power provider for Bitcoin mining, Iren has shifted into AI cloud services at a time when demand is soaring. Iren has accumulated leading Nvidia chips to provide customers with AI cloud services.

In an August business update yesterday, Iren co-founder and co-CEO Daniel Roberts stated, "Demand for our AI Cloud is accelerating as we prepare for the delivery of approximately 9,000 Nvidia Blackwell GPUs [graphics processing units] over the coming months."

Since the Nebius deal was announced, more investors are noticing Iren today. That's after the stock more than tripled year to date, though.

Iren also announced the appointment of a new chief financial officer yesterday. Anthony Lewis seems like a logical pick, as he oversaw financing for Iren's recently announced GPU chip purchases.

Iren's market cap is around $8 billion after today's jump. Its data center capacity is approaching 1 gigawatt. If it manages to secure a similar deal with a large tech company, investors are betting that its valuation can also grow quickly from here.

Howard Smith has positions in Microsoft, Nebius Group, and Nvidia and has the following options: short October 2025 $160 calls on Nvidia. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends Nebius Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.