An under-the-radar AI stock is surging on news of a blockbuster deal with Microsoft

• lREN stock surged 20% to start the week on a deal with Microsoft.

• The data center company inked a $9.7 billion deal to provide Mag 7 titan with AI cloud capacity.

• The five-year agreement will provide Microsoft wth access to Nvidia’s GB300 GPUs.

The move: IREN stock jumped 20% on Monday. The Australian data center company has already enjoyed a stellar rally in 2025, rising more than 500% year-to-date.

Why: Microsoft announced on Monday that it has reached an agreement with IREN to purchase AI cloud capacity. The deal, which makes Microsoft IREN’s biggest customer, is worth up to $9.7 million and includes a 20% prepayment, according to a statement from IREN.

The five-year agreement will provide Microsoft wth access to Nvidia’s GB300 GPUs at IREN’s facility in Childress, Texas.

“It marks another major step forward for IREN as we continue to expand large-scale GPU deployments across our 3GW secured power portfolio in North America, reinforcing our position as a leading AI Cloud Service Provider,” Daniel Roberts, co-Founder and co-CEO of IREN said.

What it means: Partnering with a tech leader like Microsoft and securing a $9.7 billion, five-year deal is a big moment for IREN in a year that’s already seen its stock soar.

This news signals strong demand for its high-performance computing systems, improving its growth outlook. The development could also boost institutional investor confidence by connecting IREN to one of the AI ecosystem’s biggest players as its leaders double down in capex spending.

IREN has also benefited recently from rising retail investor interest after being touted by hedge fund manager Eric Jackson, the architect of this year’s rally in Opendoor stock.

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