Iren Shares Slide as AI Infrastructure Spending Concerns Mount

Iren, the vertically integrated data center operator specializing in Bitcoin mining and AI cloud services, saw its stock price tumble 8.11% to close at $44.44 on Tuesday. The decline was triggered by a combination of a lowered analyst price target and a wider retreat from AI-related assets. The downturn comes as investors reassess the trajectory of AI infrastructure spending. Sentiment was further dampened by reports that OpenAI, a bellwether for the industry, failed to meet critical user and revenue targets, prompting a reconsideration of the growth projections for the entire sector. Bernstein analysts reduced their price target for Iren by $25 to $100 per share. Despite the cut, the firm maintained Iren as its preferred AI-focused Bitcoin miner. Trading activity was elevated, with 39 million shares changing hands, roughly 5% above the three-month average of 37.1 million. The sell-off extended to peers, with CoreWeave falling 5.83% to $105.53 and Nebius Group dropping 6.52% to $135.51. This trend mirrored a broader dip in tech indices, as the Nasdaq Composite fell 0.90% to 24,664 and the S&P 500 declined 0.49% to 7,139. As Iren pivots from Bitcoin mining toward large-scale AI cloud provision, the market is increasingly focused on the cost of borrowing to fund asset growth. Investors are now weighing the risks of aggressive expansion against the reality of AI monetization.