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Famous TV host Jim Cramer issued a “Sell” rating on a prominent AI infrastructure stock that has been under pressure in recent weeks despite several catalysts and tailwinds.
The stock in question is Australian Bitcoin (CRYPTO: BTC) miner turned AI infrastructure company, Ireland Ltd. (NASDAQ:IREN), which has seen a steep pullback over the past few weeks following a monumental rally this year.
In a short and cryptic post on X on Monday, the host of CNBC’s “Mad Money” said, “Iren? Time to sell… ha!” with no other details to explain his post or his view of the company. This comes on the heels of the stock’s 11.59% drop on the day, closing 53.84% below its 52-week high from November.
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Cramer was bullish on the stock until a month ago, saying he doubted it in the past but “it just doesn’t matter anymore” given the scale of demand for AI computing resources.
He, however, changed his view of the company after its announcement of a $2 billion convertible note offering earlier this month.
Cramer called the move an unnecessary dilution of equity, even though other major investors such as Eric Jackson of EMJ Capital defended it as a much-needed “balance sheet cleanup”.
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Irene has been under pressure for the past six weeks despite signing a $9.7 billion multi-year deal with Microsoft Corp. (NASDAQ:MSFT) early last month, one of the largest deals in the AI infrastructure space.
Analysts at B. Riley, however, see the stock’s pullback as a buying opportunity as they reiterate their “Buy” rating, with a $74 price target per share, which represents a 108.56% upside from current levels.
Analysts said the cut was a “sentiment-driven reset” rather than anything wrong with the company’s fundamentals, according to a report by CoinDesk.
The stock has a consensus target price of $56.93, with a peak target of $136.00, representing a 60.45% and 283.31% upside, respectively.
Iren shares fell 11.59% to close at $35.48 on Monday and fell 2.82% overnight. Stocks have high scores on Momentum in Benzinga’s Edge Stock Rankingswith a favorable long-term price trend. Click here for a deeper look at the stock, its peers and competitors.
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This article Jim Cramer Says ‘Time to Sell’ This AI Infrastructure Stock Amid Steep Pullback Despite New Partnerships, Upbeat Analyst Ratings originally appeared on Benzinga.com
