Today’s Change
Current Price
Iren (IREN 8.11%), vertically integrated data center operator for Bitcoin mining and AI cloud services, closed Tuesday at $44.44, down 8.11%. The stock fell after a Bernstein price-target cut, and renewed concerns about AI infrastructure spending, with investors watching for signs of stabilizing demand. Trading volume reached 39 million shares, coming in nearly 5% above its three-month average of 37.1 million shares. Iren IPO’d in 2021 and has grown 82% since going public.
How the markets moved today
The S&P 500 (^GSPC 0.49%) fell 0.49% to 7,139, while the Nasdaq Composite (^IXIC 0.90%) lost 0.90% to finish at 24,664. Among data processing services peers, CoreWeave (CRWV 5.83%) closed at $105.53, down 5.83%, and Nebius Group (NBIS 6.52%) ended at $135.51, sinking 6.52% as investors reassessed AI assets.
What this means for investors
Yesterday, Bernstein analysts lowered their price target for Iren by $25 to $100 per share while keeping it their top AI-focused Bitcoin (BTC 0.61%) miner choice. Iren’s evolution into a large-scale AI cloud provider is moving quickly, and that is now the focus rather than Bitcoin mining.
Negative sentiment gained momentum today with AI infrastructure and data-center stocks selling off after a Wall Street Journal article reported that AI research giant OpenAI fell short of critical revenue and user goals.
That led investors to reconsider whether AI spending plans will continue to grow, knocking Iren and other AI infrastructure owner stocks lower today. Borrowing to build and grow assets could now be viewed as a bigger concern, and investors should remain properly allocated in this sector.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
