IREN Stock Up Nearly 900% Over 6 Months, Rises 8% Before The Bell: What's Driving The Surge?

Shares of IREN Ltd (NASDAQ:IREN) climbed 8% in pre-market trading on Tuesday, as the data center operator announced multi-year agreements with major artificial intelligence companies deploying NVIDIA Corp.’s (NASDAQ:NVDA) Blackwell GPUs.

AI Pivot, Cloud Service Deals Drive Stock Surge

IREN on Tuesday said its expanding AI Cloud division remains on track to surpass $500 million in annualized recurring revenue from a combined fleet of 23,000 GPUs that are either active or scheduled to come online by the first quarter of 2026.

Shares in the company are up nearly 900% over the last six months, touching an all-time high of $58.28 on Monday. The recent momentum in shares is being fueled by investor optimism about IREN's strategic move from a Bitcoin (CRYPTO: BTC) miner to an AI infrastructure powerhouse.

The company said it has also inked customer commitments for roughly 11,000 GPUs, representing about $225 million in annualized cloud revenue. These are expected to be operational by the end of 2025.

‘Picasso At A Garage Sale’

Investor Andrew Wilkinson, a high-profile bull, has referred to the stock as a “Picasso at a garage sale,” implying it is still significantly undervalued. Despite some analysts agreeing with this optimism, the stock’s high valuation continues to spark a debate among investors about its future growth.

The recent surge in IREN’s stock price is part of a larger trend. The stock had experienced a significant rise earlier in September, following the company’s announcement of an expansion of its artificial intelligence cloud capacity and new revenue guidance.

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However, this was followed by a recent JPMorgan downgrade to Underweight, which had briefly slowed down the stock’s rise due to valuation concerns.

Benzinga Edge Stock Rankings shows that IREN has a strong price trend over the short, medium, and long term. Its momentum ranking was high at the 100th percentile, whereas its value ranking was poor at the 3rd percentile; the details of other metrics are available here.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.