Jim Cramer Calls IREN "Too Hot"

IREN Limited (NASDAQ:IREN) is one of the stocks Jim Cramer recently commented on. Cramer mentioned the stock’s recent rally, as he commented:

“There are other companies like IREN, which makes power centers for bitcoin mining and is looking to pivot to AI data centers. Hey, listen, CoreWeave took that strategy. IREN is actually profitable, but its stock has rallied 380%. Too hot.”

IREN Limited (NASDAQ:IREN) runs renewable energy-powered data centers and engages in Bitcoin mining, with operations structured as a vertically integrated platform. The company focuses on combining sustainable infrastructure with digital asset mining. On September 25, Bernstein analyst Gautam Chhugani raised the stock price target to $75 from $20 and reiterated an Outperform rating.

The firm highlighted IREN Limited’s (NASDAQ:IREN) shift from traditional Bitcoin mining toward building its own AI cloud vertical, requiring heavy capex, GPU leverage, and execution in a competitive space dominated by neocloud leaders with hyperscaler and NVIDIA ties. Bernstein noted that it had previously underestimated these capabilities, but now sees enough progress to take the AI cloud business seriously and support a re-rating case.

While we acknowledge the potential of IREN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.