IREN Ltd (IREN), the Australian data center operator, saw its stock soar by 5.99% during Wednesday's trading session, building on its pre-market momentum and recent gains. The company's successful transition from Bitcoin mining to AI cloud services, coupled with a landmark deal with Microsoft, continues to drive investor enthusiasm.

The surge follows IREN's announcement of a multi-year, $9.7 billion GPU cloud services contract with Microsoft, one of the largest in the AI infrastructure sector. This deal, which involves supplying Nvidia GB300 GPUs, is seen as a critical validation of IREN's strategic pivot into the AI space. Additionally, IREN has secured a $5.8 billion partnership with Dell Technologies for equipment, further solidifying its position in the market.

Adding to the positive sentiment, Wall Street analysts have responded favorably to these developments. Roth MKM's Darren Aftahi recently raised his price target for IREN from $82 to $94, representing a significant upside potential. The company is set to report its quarterly earnings later today, with analysts expecting a 333% increase in revenue to $235.5 million and earnings of 16 cents per share.

IREN's impressive performance reflects the market's growing appetite for AI-related investments and the company's strong positioning in the AI infrastructure market. Year-to-date, the stock has skyrocketed by over 547%, highlighting the transformative impact of its strategic shift towards AI cloud services. As IREN continues to capitalize on the booming demand for AI power and cooling solutions, investors remain optimistic about its future prospects in this rapidly expanding sector.