NASDAQ-listed IREN stock experienced a major rally on Monday as it surged nearly 7% in the day’s trade. The rise made it one of the day’s top gainers and saw a surge in trading volume. Both retail and institutional funds took an entry position to ride the bull and make profits. The equity ended the day’s trade at $40 and has come out of its April lows.

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What Pushed IREN Stock Up 7%

All eyes are on the equity, as it is linked to the AI sector and supplies renewable energy to data centers. The 7% rise in IREN stock came after the company announced that it secured a $2.8 billion AI contract with two firms. The billion-dollar deal added Perplexity and Figure AI as its new cloud customers, expanding its client list.

The $2.8 billion contract is a multi-year agreement for cloud services, making its target of reaching $4 billion much closer. The development is what made IREN stock turn bullish, with a flurry of investments going its way on Monday. CEO Daniel Roberts said in a statement that the company’s business is expanding at rapid speed.

“Our vertically integrated AI Cloud platform is scaling at pace. In the past 12 months, we have expanded from approximately 3MW of self-built AI Cloud capacity to 480MW being delivered this year, with 1.2GW targeted for 2027, broadening our customer base across hyperscalers, enterprises and AI developers,” he said in a statement, as IREN stock surged in value.

Should You Buy the Equity Now?

Wall Street has remained bullish on IREN stock, with investment banking firm Bernstein maintaining its buy rating. The bank’s stock market analyst Gautam Chhugani wrote in a note to clients that the equity could more than double in value. The financial strategist predicted that IREN stock could reach a price target of $100. That’s a straight profit of nearly 150%, and can make an investment of $1,000 turn into $2,500.