IREN Ltd's stock surged 5% over the 24-hour period ending Monday night, marking a significant rebound for the AI infrastructure provider. The company, which has pivoted from Bitcoin mining to high-performance computing, announced a major business update that drove investor optimism.

The rally was fueled by IREN's disclosure of $2.8 billion in new multiyear cloud-service contracts with several top artificial intelligence developers, including Microsoft and NVIDIA. As a result of these agreements, the company raised its year-end 2026 annualized run-rate revenue target for its AI cloud business to over $4 billion, up from its previous target of $3.7 billion.

According to company statements, customer prepayments are covering approximately 45% of the capital expenditures associated with graphic processing units, reducing IREN's net funding requirements for new deployments. The contracts have a weighted average term of roughly four years, providing revenue visibility. The news helped ease investor concerns about the high costs of building data centers and demonstrated sustained demand for neocloud services amid the AI infrastructure boom.