IREN (IREN) Stock Rockets 27% Following Major Nvidia Deal and Spain Acquisition

Key Highlights

Table of Contents

IREN shares climbed 27% following the disclosure of a major collaboration with Nvidia for deploying 5 gigawatts of AI infrastructure
The chip giant received a five-year option to purchase up to 30 million IREN shares at $70 apiece, representing a possible $2.1 billion stake
IREN’s Sweetwater facility in Texas (2 GW capacity) will function as the primary deployment location for Nvidia’s DSX platform
Separately, IREN announced the acquisition of Ingenostrum (Nostrum Group), a Spain-based developer, establishing its European presence
The Spanish acquisition contributes 490 megawatts of grid-secured power capacity, elevating IREN’s combined portfolio to 5 gigawatts

Shares of IREN Limited (IREN) surged 27% during after-hours trading on May 7 following the simultaneous release of two significant corporate developments.

IREN Limited, IREN

The company unveiled a strategic alliance with Nvidia (NVDA) focused on rolling out up to 5 gigawatts of AI-focused infrastructure. Concurrently, IREN disclosed plans to purchase Ingenostrum, a data center development firm based in Spain, alternatively known as Nostrum Group.

Prior to these announcements, IREN shares were hovering near $56. The after-hours surge drove the stock substantially higher, demonstrating strong investor enthusiasm for both initiatives.

IREN and @nvidia have announced a strategic partnership to accelerate deployment of up to 5GW of next-generation AI infrastructure. The companies have also signed a $3.4bn contract under which $IREN will provide AI infrastructure cloud services for NVIDIA internal AI and… pic.twitter.com/0SMzSYQjul

— IREN (@IREN_Ltd) May 8, 2026

The collaboration with Nvidia revolves around implementing Nvidia’s DSX-optimized accelerated computing infrastructure throughout IREN’s worldwide data center network. The partnership encompasses compute resources, networking systems, software platforms, power management, and operational coordination.

A significant portion of this development will take place at IREN’s Sweetwater facility in West Texas. With a total capacity of 2 gigawatts, this location is positioned to become the flagship demonstration site for Nvidia’s DSX AI factory architecture.

Jensen Huang, Nvidia’s founder and CEO, emphasized that AI factories are emerging as critical infrastructure for the worldwide economy, noting that IREN possesses both the scale and technical capability required to expedite this expansion.

Under the agreement’s terms, IREN provided Nvidia with a five-year warrant to acquire up to 30 million IREN shares priced at $70 each. This amounts to a potential $2.1 billion commitment, contingent upon regulatory clearances and additional stipulations.

IREN Establishes European Foothold

Simultaneously, IREN revealed its agreement to purchase Ingenostrum, S.L., a data center development company headquartered in Spain. This transaction represents IREN’s inaugural expansion into European territory.

The acquisition delivers 490 megawatts of secured, grid-integrated power capacity in Spain, alongside an active development pipeline and an experienced local workforce specializing in engineering, construction, and facility management.

Following this transaction, IREN’s aggregate power capacity reaches 5 gigawatts spanning its international operations. The deal remains pending customary closing requirements.

Analyst Perspectives

Financial analysts have maintained an optimistic outlook on IREN leading up to these announcements. The stock holds a Strong Buy consensus rating derived from six Buy recommendations and one Hold rating issued by analysts during the previous three months.

The consensus price target among analysts stands at $78.43, suggesting approximately 39% appreciation potential from pre-announcement trading levels.

The dual impact of the Nvidia collaboration and the European acquisition provides IREN with expanded power infrastructure and a more defined strategy for scaling its AI Cloud offerings across diverse geographic markets.

IREN’s two-gigawatt Sweetwater campus in Texas continues to anchor its immediate strategic priorities, and the facility now benefits from a prominent technology partner in Nvidia to facilitate full-scale deployment.

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