IREN shares tumble after report links Texas data‑center delays to Microsoft AI‑spending slowdown
IREN’s stock dropped sharply after a report said delays at its Childress, Texas data centre caused Microsoft to postpone AI‑related capital spending. The company’s long‑term agreement expects Microsoft to lease GPU servers at Childress for about $9.7 billion, and the contract is valued at roughly $1.94 billion per year, half of IREN’s targeted $4 billion run‑rate revenue for 2026. IREN is scheduled to release its fiscal Q1 2027 results after the market close on November 5, and analysts are watching whether the remaining three deployment phases will stay on track for December.
Why it matters
The share‑price decline reflects investor concern that the delayed capacity could jeopardize IREN’s ability to meet its $4 billion revenue target and avoid delay penalties, potentially affecting cash flow before the earnings release. Analysts note that the shortfall in Microsoft’s capex, which was $5 billion less than planned, adds uncertainty to IREN’s revenue outlook.
Key facts
- 1IREN’s stock fell about 9% to $19.70. 247wallst.com
- 2IREN’s stock fell 20% later in the day. finance.yahoo.com
- 3IREN aims to generate $4 billion of contracted annual recurring revenue by December 31, 2026. 247wallst.com
- 4Microsoft’s Childress contract is expected to bring roughly $1.94 billion per year, about half of IREN’s contracted run‑rate revenue. finance.yahoo.com
- 5Microsoft spent $5 billion less on capital expenditures than planned for the September quarter. 247wallst.com
- 6IREN will report its fiscal Q1 2027 results after the market close on November 5. 247wallst.com
Open questions
- Conflicting reports on the magnitude of IREN’s intraday share decline (9% vs. 20%).
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.