IREN Ltd (IREN) shares took a hit Monday, falling over 9% as investors pumped the brakes on high-flying momentum names. But here's the thing: even with the recent pullback, this stock is still up a staggering 270% in 2025. So what's driving the sudden weakness?

From Mining to AI Infrastructure

IREN has pulled off a pretty dramatic transformation this year, shifting its core business from traditional mining operations to building and operating high-performance data centers designed specifically for artificial intelligence and GPU cloud services. That pivot sparked a massive rally in the share price.

The highlight came in November when IREN announced a major five-year, $9.7 billion GPU cloud partnership with Microsoft. The deal involves supplying Nvidia GB300s through new liquid-cooled facilities at IREN's Texas campus. That's not small potatoes—it positions IREN as a legitimate infrastructure provider for hyperscalers and validates its strategic shift into the AI space.

When Legends Take Profits

The recent selloff appears to be classic profit-taking after an extraordinary run. Case in point: hedge fund legend Paul Tudor Jones recently trimmed his IREN position by more than 90%, according to recent filings. Based on filing data and price history, Jones likely turned roughly $13 million into $53 million—locking in nearly $40 million in gains before heading for the exit.

When someone with Jones' track record sells that aggressively after a 300% gain from his average buy price, other investors tend to notice. Combined with broader rotation out of high-growth trades and renewed caution around AI infrastructure valuations, IREN got swept up in the momentum unwind.

What the Charts Say

The technical picture shows clear short-term weakness. IREN currently trades 19.5% below its 20-day simple moving average and 33.1% under its 50-day SMA. The RSI sits at 38.56, leaning toward oversold territory but not screaming capitulation. Meanwhile, the MACD remains below its signal line, reinforcing the bearish tone.

Without clearly defined support or resistance levels at the moment, price action is harder to predict. Traders will likely watch how the stock reacts at prior highs and lows for clues about whether this is a brief consolidation or something more sustained.

While the longer-term trend remains intact given the massive year-to-date gain, the struggle below key moving averages and mixed momentum signals suggest caution is warranted in the near term.

Price Action: IREN shares were down 9.22% at $36.42 at the time of publication on Monday.