Stock Market Today, Nov. 6: Iren Soars 20% on Strong AI Cloud Revenue Growth

Bitcoin miner IREN plans $15 billion in capital spending for fiscal 2027, with $6 billion still to be raised. The company has secured $9 billion through cash, GPU financing, and prepayments. IREN aims to fund the remaining amount through targeted financing and corporate-level sources, subject to market conditions. The expansion is anchored by a $9.7 billion contract with Microsoft, with the first phase already delivered.

IREN co-CEO Daniel Roberts reported that older NVIDIA H100 GPUs were recontracted at double their original price, supporting IREN's revenue and NVIDIA's installed base. IREN's capital spending was $4.82 billion in Q3 2026, with a new contract prepaying 90% of GPU capex. IREN's stock traded at 3.1x forward sales, below its 3-year average. Analysts expect IREN's revenue to quadruple by fiscal 2027.

IREN Limited (NASDAQ:IREN) shares rose 15.30% after reporting Q1 revenue of $228M, matching estimates. AI cloud revenue surged 182% to $200M, while bitcoin mining revenue fell to $28M. The company narrowed its net loss and increased adjusted EBITDA. IREN delayed its $4B ARR target to January 2027 due to customer and supplier timing, but it remains fully contracted and funded. The company's revenue backlog grew 22% to $20.3B.

IREN stock fell 13% from October 26 to November 2, reaching a 52-week low of $17.16 on November 5. Despite a 66% revenue increase to $228M, IREN reported a $263M net loss and $15B in planned capital spending, raising execution risks. Microsoft, Cipher Digital, and Applied Digital also faced financing concerns in the AI infrastructure sector.

On November 4, 2026, data center stocks fell sharply after Democrats won midterm elections, gaining control of Congress and key states. CoreWeave dropped nearly 10%, IREN 5.9%, and others declined. Meanwhile, AI spenders like Amazon, Microsoft, and Alphabet rose. Analysts suggest Democratic wins may slow AI data center construction, impacting suppliers but benefiting large tech firms.

Microsoft is ending its agreement with Oracle to rent AI computing capacity, as the older Nvidia chips no longer meet its needs. Oracle claims strong demand for its AI infrastructure, including older GPUs. Microsoft has over $80B in cloud commitments and is reviewing its supplier agreements. IREN, a Bitcoin miner, faces delays in its Microsoft deployment. Oracle and Microsoft have other AI cloud partnerships, including one with OpenAI.