Why Iren Stock Surged Higher Today
Key Points
Iren has been seeing extraordinary revenue growth.
A slowdown in AI spending would dent that trajectory.
AI infrastructure is expected to remain in high demand for the foreseeable future.
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After rocketing higher by as much as 678% this year, investors had been dumping shares of Iren Limited (NASDAQ: IREN) in recent weeks. Shares of the artificial intelligence (AI) infrastructure provider are still more than 30% off recent highs, even after jumping today.
The stock's 12.7% gain as of 11:10 a.m. ET came after AI bellwether Nvidia calmed investor fears of an AI spending bubble with a blowout earnings report. That spending includes a nearly $10 billion deal Iren recently announced with Microsoft.
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With demand for AI infrastructure seemingly still remarkably resilient, investors are again seeing a long runway for growth for Iren.
Image source: Getty Images.
AI capital spending hasn't slowed
Nvidia CEO Jensen Huang allayed fears of an AI capital spending slowdown, stating that the company's chip sales remain robust. Iren investors in particular may have noticed his comment that "compute demand keeps accelerating and compounding across training and inference -- each growing exponentially."
Iren is one of the infrastructure companies able to help meet that soaring demand. The company recently secured a $9.7 billion contract with Microsoft, and investors are relieved to hear from Huang that he sees no end in sight for growth in the AI sector.
In its fiscal 2026 first-quarter update earlier this month, Iren reported a 355% year-over-year increase in revenue. That acceleration could continue as it expands capacity and potentially inks more deals with AI hyperscalers seeking compute capacity.
Investors are jumping in today as they see that growth runway extending well into the future.
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Howard Smith has positions in Microsoft and Nvidia and has the following options: short February 2026 $170 calls on Nvidia. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool 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.
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