IREN stock rose 10% following Nvidia announcements of increased AI infrastructure investments.

IREN Ltd. (NASDAQ:IREN) climbed by 10.13 percent on Wednesday to finish at $41.98 apiece, as investor optimism was fueled by Nvidia Corp.'s ramped up investments in data center companies, strengthening confidence for the artificial intelligence sector. Sitting at the center of the rapidly growing AI industry, investors have long been watching Nvidia's investments as the company's moves often signal which companies could become important in the AI boom.

On the same day, Nvidia announced that it invested $2 billion in Nebius Group and inked a deal with the latter for the development and deployment of next generation hyperscale cloud for the AI market, deepening the relationship across the full AI technology stack, from AI factory architecture to production software. For IREN Ltd., Nvidia's investment in the industry opens further room for business growth as the company gradually transitions to AI servicing from purely Bitcoin mining.

IREN Ltd. announced targets of $3.7 billion in annualized run-rate revenues by the end of the year, to be supported by its successful expansion of Nvidia B300 GPU fleet to a total of 150,000 units, with the recent purchase of 50,000 earlier this month. The additional GPUs are targeted to be deployed in phases across its existing data centers in Mackenzie, British Columbia, and Childress, Texas through the second half of the year.