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Microsoft AI Cloud Deal and 2GW Growth Path Drive Bull Case for IREN

Iren Ltd. (NASDAQ:IREN) is one of the Trending AI Stocks on Wall Street. On January 13, H.C. Wainwright analyst Mike Colonnese double upgraded the stock from Sell to Buy with a price target of $80.00. Firm analysts see a transformative year ahead for IREN, with $9.7B Microsoft AI deal and 2GW dev pipeline serving as key drivers.

Firm analysts anticipate the AI infrastructure trade to continue serving as a major investment theme in 2o26. Factors driving this momentum include hyperscaler capex budgets, accelerating demand for near-term access to large-scale power, and positive investor sentiment.

Colonnese believes that IREN offers the most leveraged exposure across its coverage universe since it has already secured one of the largest AI contracts to date among BTC miners with a blue-chip counterparty. This, he noted, isn’t fully priced into shares.

Meanwhile, IREN has also secured a $9.7B, five-year AI cloud deal with Microsoft which the firm anticipates to be fully monetized by the end of 2026 and generate an estimated $1.94B in ARR once 200 MW of critical IT capacity are deployed at Childress data center.

Firm analyst also highlighted how IREN has more than 2GW of incremental capacity to be energized by 2027, offering the company a pathway for AI colocation growth. The stock’s correction from its all-time highs in early November presents an attractive opportunity for investors.

“We would not be surprised to see the company announce new AI contracts in 2026 on a portion of this secured capacity. Meanwhile, the stock has corrected by ~35% from its all-time highs in early November 2025, presenting an attractive entry point for investors, as we see it. We also note that the company raised $2.3B of fresh capital via convertible offerings last month, adding to its $1.8B cash position (as of the end of October 2025) to support the buildout of its AI data centers at Childress.”

Iren Ltd. (NASDAQ:IREN) operates 100% renewable energy-based data centers across Australia and Canada.

While we acknowledge the risk and potential of IREN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IREN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 11 AI Stocks on the Market’s Radar and 12 Hot AI Stocks to Keep on Your Radar

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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