IREN Ltd (NASDAQ: IREN) stock is surging 8.24% in pre-market trading on Monday, as investors react to a significant price target increase and news of a major AI cloud services agreement with Microsoft. This upward movement follows a 7.41% gain from the previous trading session, indicating strong momentum for the company.

Canaccord Genuity has raised its price target for IREN from $42 to $70, maintaining a Buy rating on the stock. This substantial increase in the price target reflects growing confidence in IREN's future prospects. Analyst Joseph Vafi from Canaccord Genuity reaffirmed the positive outlook for the company, contributing to the bullish sentiment among investors.

Adding to the optimism is the announcement of a groundbreaking $9.7 billion AI cloud services agreement between IREN and tech giant Microsoft. The deal involves the deployment of NVIDIA GB300 GPUs across IREN's extensive 750 MW Texas campus. This partnership positions IREN as a key player in providing high-performance computing resources for AI applications, potentially revolutionizing the company's market position and future growth prospects in the rapidly expanding AI infrastructure sector.