Hear me out: I strongly believe the market is seriously underestimating
$IREN.
The stock closed Friday at just $26.99, roughly 65% below its 52-week high of $76.87. Yet the company's AI cloud business continues to expand, and the latest Microsoft news makes its competitive advantages even more compelling.
Microsoft just pulled out of a deal with Nscale for a 50MW AI data center in the UK. The project has faced major delays, with grid officials warning that electricity may not be available until the 2030s.
Now compare that with
$IREN.
IREN has already delivered its first 50MW Horizon AI data center deployment to Microsoft, which has formally accepted it.
That's the first of four planned 50MW deployments under a massive $9.7 BILLION, five-year cloud services agreement. The remaining three are targeted for delivery in Q4 2026.
And Microsoft isn't the only customer. IREN also secured a $3.4 BILLION cloud services contract with NVIDIA, alongside billions in additional agreements with AI developers and frontier AI labs.
The financial opportunity is enormous. IREN reported $4 BILLION in contracted annualized run-rate revenue tied to its 2026 capacity, with $1 BILLION in operating annualized revenue already established as of its August update. Its AI Cloud Services revenue also increased nearly 8x in FY2026.
Meanwhile, IREN has assembled a global development pipeline backed by more than 5GW of power connection agreements and related commitments across multiple countries.
Think about the setup: a $9.7B Microsoft contract, a $3.4B NVIDIA agreement, $4B in contracted ARR, 5GW of future development capacity, and an AI cloud business rapidly scaling.
Yet the stock is trading around $27.
Here's what investors need to understand: the AI infrastructure race isn't just about who can sign the biggest contracts. It's about who can secure electricity, build the infrastructure, and actually deliver the computing power customers are paying for.
Microsoft's withdrawal from Nscale is another reminder of how difficult that execution can be.
Yes, IREN still faces significant financing and execution risks as it expands. But it has already demonstrated that it can deliver meaningful capacity to one of the world's largest technology companies.
At these levels, I strongly believe
$IREN represents one of the most compelling long-term opportunities in AI infrastructure for investors willing to look beyond the recent selloff.
I'm not just talking about this opportunity.
I've been aggressively adding to my position.