IREN Stock Sinks 12% in One Day, Yet These Two Analysts Say Buy — Here’s Why

Shares in data center operator Iren Limited (IREN) tumbled 11.59% on Monday and are now 47% below their one-year high from November 5. However, B. Riley (RILY) sees it as a sentiment-driven selloff rather than a balance-sheet problem.

On November 5, IREN stock surged about 15% to close the day at $76.41 — two days after shares in the Sydney-based company soared 23% following its $9.7 billion deal with U.S. tech giant Microsoft (MSFT). However, the stock has seen several key plunges since then, dropping by 13% on November 11 and by over 15% on December 2.

IREN Sinks 21% in November

Shares in Iren also plummeted more than 21% in November amid the volatility that trailed its first-quarter Fiscal Year 2026 earnings results. Reacting to the drops, B. Riley analysts Nick Giles and Fedor Shabalin argued that IREN’s recent share moves mainly reflect investor worries about AI stocks, as the company is effectively being used as a proxy for that theme.

The analysts reaffirmed their Buy rating on IREN, with a price target of $74 per share. This implies about 109% growth potential from the stock’s closing price of $35.48 per share on Monday.

Analysts Eye Rebound on Brighter AI Outlook

Both analysts believe that the current weak stock price is an opportunity for investors to position themselves for gains when sentiment toward AI companies improves. Oracle’s (ORCL) recent Q2 2026 earnings report further weighed on sentiment toward AI names, as the software giant’s shares sold off on investor concerns about its rising AI-related spending.

Giles and Shabalin note that Iren faces a funding shortfall of roughly $2.7 billion, given its current available capital versus the approximately $11.6 billion required for planned high-performance computing investments. However, they also highlight that the company still has access to about $8.85 billion in accumulated capital to support its growth plans, including the $1.94 billion in down payment from Microsoft.

IREN recently raised $3.6 billion from its capital-raising effort, although net proceeds from this have been spent on repurchasing previous convertible notes and a capped call transaction to prevent stock dilution.

Is IREN Stock a Good Buy?

Across Wall Street, Iren Limited’s shares continue to carry a Moderate Buy consensus rating. This breaks down to nine Buys, one Hold, and two Sells issued by 12 analysts over the past three months.

However, the average IREN price target of $84 implies a massive 137% upside from the current trading levels.

See more IREN analyst ratings here.