IREN (NASDAQ:IREN) has been one of the most hyped AI infrastructure stocks on the market. However, despite the strong performance, the stock fell sharply on Monday morning.
This overnight change seemed strange at first look. Because, not too long ago, IREN inked a significant five-year cloud services contract worth $3.4 billion with NVIDIA, one of the leading firms in AI.
In addition, NVIDIA (NASDAQ:NVDA) was granted warrants that would enable it to inject up to $2.1 billion into IREN by purchasing its stock at $70 per share. This looked like a strong endorsement for the company.
The market seemed to agree.
The stock rose 7.7% following the news and rocketed 34% within a week, while over the last month, the price nearly doubled. Since the start of the year, the stock has risen 58%. This makes the former BTC miner one of the best-performing AI infrastructure stocks.
But what happened that made the stock fall today?
Strong Nvidia Partnership, But Earnings Were Weak
While the Nvidia tie-up provided a boost to the stock, IREN’s current quarterly report brought back the reality that even the most promising stories can be under financial strain.
In its Q3 fiscal, IREN recorded a revenue of $144.8 million, a far cry from Wall Street forecasts of approximately $220 million, while also dropping from its last quarter’s $184.7 million.
The bottom line was also disappointing.
IREN recorded a net loss …