IREN Stock Gains: Buys NVDA's Blackwell Systems From Dell For $1.6B To Boost AI Cloud Capacity

• Commissioning for the project is slated to begin in early 2027. 
• The cloud contract is projected to increase IREN’s annualized run-rate revenue (ARR) from $3.7 billion to $4.4 billion. 
• 14 analysts have a 12-month price target of $75, representing nearly 26% upside from Tuesday’s closing price.

IREN Limited (IREN) share price gained nearly 1% after-hours after the company finalized a $1.6 billion purchase agreement with Dell Technologies for advanced, air-cooled Blackwell systems. 

The hardware procurement is designed to support a previously announced five-year, $3.4 billion AI cloud contract with Nvidia. The multi-billion-dollar acquisition includes GPUs, servers, storage, networking components, integration services and ancillary equipment, with payment structured on a post-shipment basis.

The air-cooled systems will be integrated into the infrastructure at IREN’s Childress, Texas data center campus. Commissioning for the project is slated to begin in early 2027. Company executives stated that the transaction aims to accelerate "time-to-compute," which they identify as a primary constraint facing the artificial intelligence sector.

"Securing capacity and accelerating commissioning are our top priorities in a market where time-to-compute is everything," said Daniel Roberts, co-founder and co-CEO of IREN in a press release. Roberts added that owning the physical infrastructure, operational capabilities  and computing layers allows the firm to scale effectively for enterprise clients and hyperscalers.

Once fully commissioned, the new AI cloud contract is projected to increase IREN’s annualized run-rate revenue (ARR) from $3.7 billion to $4.4 billion, the company said in a statement. The company plans to secure dedicated GPU financing to fund the deployment, mirroring strategies used in its previous hardware rollouts.

IREN’s Recent Deal Activity 

In November 2025, IREN finalized a five-year, $9.7 billion AI cloud contract with Microsoft to provide access to next-generation Nvidia GPU architectures. 

Under that agreement, Microsoft provided a 20% upfront prepayment to help finance the phased deployment of infrastructure at the Childress campus. To support the Microsoft contract, IREN separately entered into a $5.8 billion agreement with Dell for underlying GPU and server equipment, also in November. 

The Microsoft project alone is anticipated to contribute roughly $1.94 billion annually to IREN’s recurring revenue once it goes fully online.

In addition to these hyperscale agreements, IREN has expanded its client base through multi-year cloud service contracts with specialized AI firms, including Together AI, Fluidstack, and Fireworks AI. 

Earlier this month, Nvidia Corp. invested up to $2.1 billion in Iren as part of a broader partnership between the two companies to accelerate the construction of artificial intelligence infrastructure.

IREN Retail View 

Retail sentiment on Stocktwits was “neutral,” and message volumes were “normal”.

One user bet the stock to hit $100 per share as early as November this year. 

The stock has soared 556% over the past 12 months. 14 analysts have a 12-month price target of $75, representing nearly 26% upside from Tuesday’s closing price. 

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