Why has IREN stock dropped significantly?

IREN stock has dropped 47% from its 52-week high due to volatile AI sentiment impacting the market.

What is B. Riley's outlook on IREN stock?

B. Riley maintains a buy rating and a $74 price target, viewing the recent stock decline as a potential buying opportunity.

How is IREN funding its GPU expansion?

IREN is securing capital through convertible notes, financing deals, and existing cash reserves to fund its planned GPU expansion.

Home / Business and Economy / IREN Stock Plummets: AI Sentiment Slump or Buy Signal?

IREN Stock Plummets: AI Sentiment Slump or Buy Signal?

17 Dec

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Summary

IREN stock dropped 47% from its 52-week high, underperforming peers.
Analysts see volatility as sentiment-driven, not a fundamental break.
Significant capital is planned for GPU expansion, with funding in progress.

IREN's stock has seen a sharp 47% decrease from its peak, significantly underperforming competitors in the mining and high-performance computing (HPC) sectors. Investment bank B. Riley has reiterated its buy rating and price target, attributing the stock's volatility to sentiment rather than a fundamental breakdown. Analysts point to the stock's tendency to overshoot in both directions, suggesting current AI-driven drawdowns could be opportune entry points for investors comfortable with market swings.

The company faces a substantial capital requirement for its planned HPC expansion, with an estimated $11.6 billion in capital expenditure for thousands of GPUs across multiple campuses. B. Riley's report indicates that approximately $8.85 billion in capital is already lined up, including significant prepayments from Microsoft and financing for upcoming GPU procurements, alongside existing cash reserves.