Will AI Infrastructure Stocks Keep Rising? Iren Surges After Analyst Recognition and Microsoft Partnership

Iren(NASDAQ:IREN) experienced a significant rally on Monday, finishing at $50.33 with a 9.34% daily gain, marking renewed momentum in companies bridging crypto infrastructure and artificial intelligence computing. Since its 2021 IPO, the stock has delivered a 106% return, and yesterday’s trading volume of 52 million shares—roughly 37% above the three-month average—underscores investor enthusiasm for this sector.

Catalyst Behind the Rally: AI Infrastructure Shift

The surge comes on the heels of Bernstein analyst Gautam Chhugani’s recent recognition of Iren as his leading choice among AI-focused companies heading into 2026. The analyst’s naming reflects confidence in the company’s strategic pivot: transitioning from pure Bitcoin(CRYPTO:BTC) mining operations to enterprise-grade AI computing infrastructure. A landmark $10 billion cloud computing agreement with Microsoft(NASDAQ:MSFT) forms the backbone of this investment thesis.

Iren’s transition illustrates a broader market trend—traditional cryptocurrency mining facilities, with their existing server infrastructure and power management expertise, are becoming prime assets for high-performance computing demand driven by generative AI workloads.

Market Breadth and Sector Rotation

The broader market showed modest gains, with the S&P 500(SNPINDEX:^GSPC) advancing 0.15% to 6,977 and the Nasdaq Composite(NASDAQINDEX:^IXIC) rising 0.26% to 23,734. Iren’s peers in the crypto-mining-turned-AI-infrastructure space also performed well: Mara Holdings(NASDAQ:MARA) climbed 4.21% while Riot Platforms(NASDAQ:RIOT) jumped 7.38%, as traders reassess the sector’s potential within the growing AI infrastructure investment cycle.

Why This Matters for Long-Term Positioning

Iren’s business model—generating steady cash flow from legacy crypto mining while simultaneously deploying capital into cutting-edge AI data centers—provides a unique runway for scaling. The company continues raising capital to expand compute capacity, positioning itself for potential additional enterprise partnerships beyond the Microsoft engagement.

For investors tracking AI infrastructure exposure, Iren’s performance highlights how companies with existing operational infrastructure and enterprise validation are attracting institutional attention in what remains an evolving AI buildout phase.