Iren Limited (IREN +11.40%) stock has been quietly making shareholders richer this year. Today's jump came after a big deal was announced in the artificial intelligence (AI) cloud infrastructure space.
Today, Iren shares spiked higher by 15.8% as of 3:08 p.m. ET. But Iren stock has been stealthily moving higher all year. Shares of the vertically integrated data center company have more than tripled year to date.
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The demand for AI infrastructure is soaring
The AI cloud infrastructure space is gaining headlines today after a huge deal between Microsoft and AI infrastructure company Nebius Group was announced. The deal could be worth up to $19.4 billion for Nebius, which had a market cap of just about $15 billion yesterday.
Previously known as a power provider for Bitcoin mining, Iren has shifted into AI cloud services at a time when demand is soaring. Iren has accumulated leading Nvidia chips to provide customers with AI cloud services.
In an August business update yesterday, Iren co-founder and co-CEO Daniel Roberts stated, "Demand for our AI Cloud is accelerating as we prepare for the delivery of approximately 9,000 Nvidia Blackwell GPUs [graphics processing units] over the coming months."
Since the Nebius deal was announced, more investors are noticing Iren today. That's after the stock more than tripled year to date, though.
NASDAQ: IREN
Key Data Points
Iren also announced the appointment of a new chief financial officer yesterday. Anthony Lewis seems like a logical pick, as he oversaw financing for Iren's recently announced GPU chip purchases.
Iren's market cap is around $8 billion after today's jump. Its data center capacity is approaching 1 gigawatt. If it manages to secure a similar deal with a large tech company, investors are betting that its valuation can also grow quickly from here.
