IREN Limited (NASDAQ: IREN) shares experienced a significant surge in pre-market trading on November 3, 2025, climbing 22.09% to reach $74.17. This dramatic rally followed the company's announcement of a substantial $9.7 billion multi-year GPU cloud services contract with Microsoft.
This landmark agreement marks a pivotal moment for IREN, a provider of AI cloud services. It validates the company's vertically integrated platform and establishes it as a key strategic partner to Microsoft, one of the world's leading technology corporations. The contract stipulates that IREN will deploy NVIDIA GB300 GPUs over a five-year period. Microsoft will provide a 20% prepayment on the total contract value, offering IREN immediate financial support.
A Transformative Deal for IREN in the AI Cloud Market
The agreement, officially announced on November 3, 2025, will see IREN provide Microsoft with access to NVIDIA GB300 GPUs for a term of five years, with the total contract value approximating $9.7 billion. A significant component of this deal is Microsoft's 20% prepayment, which will furnish IREN with immediate capital to facilitate the deployment process. In preparation for this contract, IREN has entered into a separate agreement with Dell Technologies for the purchase of the GPUs and associated equipment, valued at approximately $5.8 billion. This purchase includes deployment services, servers, InfiniBand infrastructure, cabling, software, and licensing costs.
The deployment of these GPUs is scheduled to occur in phases throughout 2026. The location for this deployment is IREN’s extensive 750MW campus situated in Childress, Texas. This campus will feature new liquid-cooled data centers designed to support a combined critical IT load of 200MW across four phases, designated as Horizon 1-4. IREN intends to finance the considerable capital expenditures required for this expansion through a combination of its existing cash reserves, customer prepayments, ongoing operating cash flows, and additional financing strategies. The company recently concluded a $1.0 billion convertible notes offering in October 2025, which further enhances its financial flexibility for this large-scale infrastructure development.
Daniel Roberts, Co-Founder and Co-CEO of IREN, highlighted the significance of the agreement, stating that it confirms IREN's standing as a dependable AI Cloud services provider and grants access to a new segment of customers among global hyperscalers. Jonathan Tinter, President of Business Development and Ventures at Microsoft, commented on IREN's capabilities, noting that their expertise in constructing and managing fully integrated AI cloud infrastructure, coupled with their secured power capacity, positions them as a strategic partner for delivering advanced AI infrastructure to Microsoft's clientele.
IREN's Market Capitalization Reaches $16.5 Billion Amidst Significant Stock Growth
The market's strong positive reaction to the Microsoft deal propelled IREN shares to $74.17 in pre-market trading on November 3, 2025. This represents a substantial 22.09% increase from the preceding day's closing price of $60.75. This surge continues IREN's impressive upward trajectory, with the stock demonstrating exceptional returns across various timeframes.
Year-to-date, IREN has achieved a gain of 518.64%, significantly outpacing the S&P 500's return of 16.30%. Over the past year, the stock has returned an impressive 566.12%, compared to the S&P 500's 19.89%. Looking at a three-year period, IREN's stock has soared by 1,694.68%, considerably exceeding the benchmark index's gain of 76.66%.
With a current market capitalization of $16.523 billion and an enterprise value of $13.19 billion, IREN is trading at premium valuation multiples that reflect high expectations for future growth. The stock currently has a trailing P/E ratio of 155.77 and a forward P/E ratio of 65.36. The price-to-sales ratio stands at 20.95, and the enterprise value-to-revenue ratio is 26.32. For the fourth quarter of fiscal year 2025, the company reported revenue of $188.9 million and earnings of $57.5 million, with diluted EPS of $0.39. IREN currently holds total cash reserves of $564.53 million and maintains a debt-to-equity ratio of 53.05%.
Analyst sentiment regarding IREN remains varied, even following the Microsoft announcement. Price targets range from a low of $24.00 to a high of $100.00, with an average target of $63.50. In a recent rating issued on October 29, 2025, HC Wainwright & Co. downgraded the stock to "Sell" while simultaneously increasing their price target from $36 to $45. IREN is scheduled to release its first-quarter fiscal year 2026 results on November 6, 2025. These results are anticipated to provide investors with updated financial guidance following the impactful partnership with Microsoft.