IREN Stock Tumbles as JPMorgan Analyst Flags Valuation Red Flags

Another day, another Wall Street valuation warning—but this time it's hitting the crypto mining sector hard.

JPMorgan's latest bearish call sends IREN shares plunging as analysts question whether the numbers actually add up.

The Valuation Reality Check

JPMorgan's analyst team just dropped what amounts to a financial truth bomb on IREN's current pricing. The assessment cuts through the usual market hype with cold, hard valuation metrics that suggest the stock's been flying too close to the sun.

Market Reaction Speaks Volumes

Traders aren't waiting around to debate the analysis—the instant selloff shows how quickly sentiment can shift when a major player questions the fundamentals. The plunge demonstrates that even in volatile sectors, old-school valuation concerns still pack a punch.

Another reminder that when Wall Street analysts talk about 'valuation concerns,' what they really mean is 'we think you're paying too much for this thing.' Some things never change in finance—even when the asset class does.

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Here’s What Led to the Downgrade

Smith acknowledged IREN’s strong position in the bitcoin mining space, supported by its fleet efficiency and attractive power contracts.

He also noted that the firm is aggressively expanding its capabilities. It plans to expand its Cloud Services business by Q1 2026, supported by about 23,000 GPUs. Also, IREN is building out a 1.4 GW site slated to go live in April 2026, and is energizing its first 75MW HPC data center, Horizon 1.

Despite these positive developments, the analyst cautioned about valuation. Smith is concerned that the stock’s current price may already be factoring in a massive colocation deal for a data center exceeding 1 GW, which WOULD require over $10 billion in capital expenditure.

He believes that while such a deal is possible in the future, it introduces more downside risk than upside potential at current valuation levels.

Analyst Views Remain Divided on IREN Stock

IREN has seen dramatic swings recently, fueled by both bullish and bearish analyst sentiments.

Earlier this week, the stock surged to an all-time high of $49.30 after a Top Bernstein analyst raised his price target to $75, citing IREN’s unique AI infrastructure strategy compared to other Bitcoin miners. Similarly, Arete Research and Roth Capital analysts also issued Buy ratings with targets of $78 and $82, respectively. These moves are in contrast with JPMorgan’s more cautious stance.

IREN’s shift from crypto mining to AI cloud services has drawn investor attention, especially with its plan to deploy 23,000 GPUs by Q1 2026 and a 1.4 GW site launching in April 2026. It must be noted that the company also reported mining 1,825 Bitcoins last quarter, contributing to a 30% revenue jump.

Is IREN a Good Stock to Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on IREN stock based on eight Buys and three Holds assigned in the past three months. Further, the average IREN price target of $49.25 per share implies 21.91% upside potential.