IREN Ltd, a prominent player in the AI infrastructure space, saw its stock plummet by 5.04% in intraday trading on Thursday, mirroring a broader selloff in AI-related stocks. The significant drop came as the initial enthusiasm surrounding Nvidia's strong earnings report quickly dissipated, leaving many AI stocks struggling to maintain their early gains.

Earlier in the day, IREN's stock had surged by 10% at the market open, buoyed by Nvidia's record-breaking data-center revenue results. These results initially lifted spirits across the AI sector, with investors seeing them as a positive sign for companies like IREN that provide AI cloud infrastructure. However, as the day progressed, the market's mood shifted dramatically.

The reversal in IREN's fortunes was part of a larger trend affecting the tech sector. Despite Nvidia CEO Jensen Huang's optimistic outlook for the AI market, projecting a total addressable market of $3-4 trillion for AI infrastructure by 2030, investors seemed to grow wary. This caution was further fueled by stronger-than-expected jobs data, which lowered expectations for a December rate cut and raised concerns about the impact of sustained high interest rates on high-growth tech stocks. As a result, what began as a rally turned into a significant downturn for IREN and its peers in the AI infrastructure space.