Renowned TV host Jim Cramer issued a “Sell” rating on a prominent AI infrastructure stock that has been under pressure in recent weeks, despite several bullish catalysts and tailwinds.
Cramer Says It’s ‘Time To Sell’
The stock in question is Australian Bitcoin (CRYPTO: BTC) miner turned AI infrastructure company, Iren Ltd. (NASDAQ:IREN), which has witnessed a steep pullback over the past few weeks, following a monumental rally this year.
On Monday, in a short and cryptic post on X, the host of CNBC’s “Mad Money” said, “Iren? time to sell..ha!” with no further details to either explain his post, or his view on the company. This comes following the stock’s 11.59% drop during the day, closing 53.84% below its 52-week high in November.
See Also: IREN Stock Sell-Off Continues: What’s Fueling The Move?
Cramer had been bullish on the stock up until a month ago, saying that he had doubted it in the past, but “it just doesn’t matter” anymore, given the sheer scale of demand for AI compute resources.
He, however, changed his view on the company following its announcement of a $2 billion convertible note offering earlier this month.
Cramer dubbed the move an unnecessary dilution of shareholders’ equity, even as other prominent investors such as Eric Jackson of EMJ Capital defended it as a much-needed “balance sheet clean-up.”
Pullback Amid Multi-Billion-Dollar Deals
Iren has been under pressure throughout the past six weeks, despite inking a $9.7 billion multi-year deal with Microsoft Corp. (NASDAQ:MSFT) early last month, making it one of the biggest deals in the AI infrastructure space.
Analysts at B. Riley, however, see the stock’s pullback as a buying opportunity, while reiterating their “Buy” rating, with a Price Target of $74 per share, which is an upside of 108.56% from current levels.
Analysts said that the drawdown was a “sentiment-driven reset,” rather than anything wrong with the company’s fundamentals, according to a report by CoinDesk.
The consensus price target for the stock stands at $56.93, with the high-end of the target at $136.00, which represents an upside of 60.45% and 283.31%, respectively.
Iren shares were down 11.59% on Monday, closing at $35.48, and are down 2.82% overnight. The stock scores high on Momentum in Benzinga’s Edge Stock Rankings, with a favorable price trend in the long term. Click here for deeper insights into the stock, its peers and competitors.
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