IREN Shares Fall 10.78% to $31.05 After Hot CPI
IREN shares were down 10.78% at $31.05 at publication Wednesday, near their 52-week low of $28.93. September CPI rose 3.7% year over year, above the 3.6% forecast, while core CPI increased 2.6% versus 2.5% expected.
Shares of IREN Ltd (NASDAQ: IREN) were lower Wednesday, with a hot inflation report weighing on rate-sensitive stocks and a spike in CoreWeave’s bond yield raising concerns about AI financing. Elon Musk Reacts to CoreWeave Bond Yield Spike Elon Musk replied “Yikes” to a graphic venture capitalist Chamath Palihapitiya posted, prompting concern among neocloud investors. 25 billion of CoreWeave Inc. (NASDAQ: CRWV) bonds maturing in 2032.
5%, its highest close yet. Musk responded early Wednesday, a move that appears to be weighing on AI infrastructure stocks. 3 trillion in 2027. Palihapitiya said debt, leases and similar arrangements are being used to cover the shortfall.
S. 4 trillion in 2025. 1 points charged on other private credit loans. He said the near-equal pricing suggests lenders may not be charging enough to account for AI’s risks.
Jim Cramer addressed the same group this week. During CNBC’s “Mad Money” Lightning Round, he was asked about IREN and turned to CoreWeave, saying it was “the only one that I trust” in the neocloud business. If investors view a 15% yield as evidence that lenders require substantially more from AI borrowers, IREN could face similar scrutiny over its funding. Palihapitiya’s comments about narrow loan spreads add to that concern.
If AI risk has been underpriced, financing costs across the group could reset higher. Hot CPI Hits Rate-Sensitive Stocks Inflation data released Wednesday also came in hot. 6% forecast. 5%.
Rate-sensitive stocks were among the hardest hit in premarket trading. Treasury yields surged, the The dollar advanced while gold fell. ” Higher yields often weigh on growth stocks that derive much of their valuations from future cash flows. Investors view IREN as a long-duration AI infrastructure play, citing its substantial investment in data centers, power capacity and AI compute.
Higher rate expectations also raise financing costs for capital-intensive expansion, prompting many investors to cut exposure to the wider AI infrastructure sector. 05 at the time of publication on Wednesday. 93, according to Pro. Read also: Nasdaq 100 drops 1% on hot CPI, SOXX falls for a 7th day: Stock Market Today.