Iris Energy (IREN) Stock Sees 10% After-Hours Jump Amid AI Infrastructure Expansion

Shares of IREN Limited (NASDAQ: IREN) experienced a significant 10% surge in after-hours trading, drawing attention from investors and market observers. The notable increase follows a period of strategic expansion into artificial intelligence (AI) cloud services and a key partnership with Nvidia, signaling growing confidence in the company's diversified business model. The positive market sentiment reflects broader enthusiasm for companies positioned within the rapidly expanding AI infrastructure sector.

IREN Limited, formerly known as Iris Energy Limited until its rebranding in November 2024, operates vertically integrated data centers powered by 100% renewable energy. While historically known for its Bitcoin mining operations, the Australian-based company has strategically pivoted to include high-density computing applications for AI. This dual focus positions IREN to capitalize on both the cryptocurrency and AI markets.

A major catalyst for recent stock performance has been IREN's secured "preferred partner status" with Nvidia, a leading AI chip manufacturer. The company anticipates receiving over 9,000 Nvidia GPUs in the coming months, with CEO Daniel Roberts confirming that retrofits and the construction of new liquid-cooled data centers for "NVIDIA GB300 NVL72 systems" are progressing on schedule. This infrastructure development is crucial for supporting advanced AI workloads.

The positive movement in IREN's stock also aligns with recent developments in the AI infrastructure market, including a multi-billion-dollar AI deal struck by peer Nebius with Microsoft. IREN reported strong fiscal year 2025 results, with a 228% year-over-year revenue surge, and its August revenue reached $79 million. The company aims for $200-250 million in AI Cloud Annualized Revenue by December 2025, reflecting its ambitious growth targets in the sector.

The company currently boasts 810 megawatts of installed data center capacity across five U.S. locations, with an additional 2.1 gigawatts under construction. This substantial capacity, coupled with its commitment to renewable energy, underscores IREN's potential to become a significant player in providing sustainable infrastructure for both Bitcoin mining and the burgeoning AI cloud services market. As investor Andrew Wilkinson succinctly put it on social media, "> "IREN up 10% after hours 🔥."