Why AI Infrastructure Stock Iren Limited Got Crushed This Week
Key Points
The AI trade has taken it on the chin this week.
Iren saw revenue soar 355% in its recently announced fiscal first quarter.
Iren recently announced a nearly $10 billion cloud computing contract with Microsoft.
- 10 stocks we like better than Iren ›
It's been a rough week for the artificial intelligence (AI) trade, and shareholders of data center owner and operator Iren Limited (NASDAQ: IREN) felt the pain. After riding the AI wave to an all-time high of $76 per share, the stock is now more than 35% off that mark.
That crash includes this week's sharp 22% drop as of Friday morning trading, according to data provided by S&P Global Market Intelligence.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
Bitcoin miner turned AI infrastructure play
Iren has successfully pivoted its business from a Bitcoin mining operation to utilizing those data center assets for AI infrastructure needs. Its timing has been good, as demand for compute power needed for AI has soared. Revenue in its recently reported fiscal 2026 first quarter jumped 355% year over year.
Iren even reported a record $385 million profit for the period. But as the AI trade unwound this week, astute investors noticed there was more to the Iren story. That reported profit included unrealized gains related to convertible notes issued by the company.
While capital spending plans remain on track, with new data centers scheduled to open early next year and in 2027, Iren is counting on more than operating cash flows to fund those investments.
The company announced a recent, multiyear deal with Microsoft to provide the tech giant with AI cloud services for nearly $10 billion. Iren is relying on prepayments from that deal for some cash needs.
With investors beginning to question whether all the announced AI infrastructure investments will actually materialize, Iren's stock is one that was caught in the uncertainty this week. After a sharp run higher over the past six months, many investors this week are deciding to limit risk and take profits. That may be the smart trade until AI investment clouds clear.
Should you invest $1,000 in Iren right now?
Before you buy stock in Iren, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Iren wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $622,466!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,145,426!*
Now, it’s worth noting Stock Advisor’s total average return is 1,046% — a market-crushing outperformance compared to 191% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of November 10, 2025
Howard Smith has positions in Microsoft. The Motley Fool has positions in and recommends Bitcoin and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Recommended Articles
