IREN Ltd's stock experienced a significant intraday surge of 5.77% on Tuesday, extending its positive momentum from the previous session.

The sharp increase was driven by the company's announcement that it has secured multi-year cloud service contracts totaling $2.8 billion with leading artificial intelligence developers, including Microsoft and NVIDIA. These substantial agreements demonstrate strong demand for IREN's AI infrastructure services and validate the company's strategic focus on high-performance computing for AI applications.

As a result of these new contracts, IREN raised its year-end annualized run-rate revenue target for its AI cloud business to over $4 billion, up from its previous target of $3.7 billion. The company reported that approximately 85% of this updated revenue target is now secured under long-term contracts, providing significant revenue visibility. Customer prepayments are covering about 45% of the associated GPU capital expenditures, reducing the company's net funding requirements for new infrastructure deployments.