Why IREN Limited Stock Crashed Nearly 20% in July

Shares of IREN Limited (NASDAQ: IREN) slipped 19.50% in July, according to data from S&P Global Market Intelligence. The neo-cloud provider for artificial intelligence (AI) fell along with many other thematic stocks this month and came under pressure after management awarded itself massive executive compensation.The company is trying to build a data center business for AI compute, a hot stock market theme at the moment, but faces significant competition. Here's why the stock fell in July and whether it looks like a buy right now. IREN began operations as a cryptocurrency miner, which involved buying up a bunch of advanced computer chips for processing. It turns out those chips can be repurposed for AI compute, which is facing a massive shortage at the moment. IREN management decided to pivot its business toward building data centers for the AI market and recently won a $3.4 billion contract from Nvidia, which plans to start early next year. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool