Hut 8 Receives Buy Rating Amid Strong Market Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 26 2024
0mins
Source: Business Insider
Hut 8 Corp's shares rose by 6.91% as it crossed above its 5-day SMA, reflecting positive investor sentiment.
Jefferies analysts initiated coverage on Hut 8 with a Buy rating and a price target of $156, highlighting its 527 MW of secured capacity and potential for future lease signings. This positive outlook is supported by the company's strategic positioning in the AI data center market, which is expected to enhance its competitiveness amid rising demand for AI-driven infrastructure.
The implications of this rating suggest that Hut 8 is well-positioned to capitalize on the growing intersection of bitcoin mining and AI data center capabilities, attracting further investor interest.
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Analyst Views on HUT
Wall Street analysts forecast HUT stock price to fall
13 Analyst Rating
13 Buy
0 Hold
0 Sell
Strong Buy
Current: 124.240
Low
17.50
Averages
24.54
High
33.00
Current: 124.240
Low
17.50
Averages
24.54
High
33.00
About HUT
Hut 8 Corp. is an energy infrastructure platform. The Company's segments include Power, Digital Infrastructure, Compute, and Other. The Company's Power segment acquires, develops, and manages critical energy assets such as interconnects, powered land, and other electrical infrastructure to address the load demands of energy-intensive applications such as Bitcoin mining and high-performance computing. Its Power segment consists of power generation and managed services. Its Digital Infrastructure segment consists of CPU Colocation and ASIC Colocation services. The Company's Compute segment consists of Bitcoin Mining, GPU-as-a-Service, and Data Center Cloud operations. The Company, through its subsidiary, American Bitcoin Corp., is focused exclusively on industrial-scale Bitcoin mining and strategic Bitcoin reserve development. The Company's platform spans approximately 1,020 megawatts of energy capacity under management across 15 sites in the United States and Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Outstanding Market Performance: The VIP basket has risen 10% year-to-date, outperforming the S&P 500's 9% gain, suggesting that hedge fund investment strategies are excelling in the current market environment, thereby boosting investor confidence in Micron.
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- Emerging Investments: The hedge fund also disclosed new stakes in the VanEck Semiconductor ETF and aircraft parts supplier TransDigm Group, indicating confidence in the semiconductor sector, particularly amid rising AI-driven market demand.
- Bitcoin Mining Positioning: Third Point increased its investment in Hut 8, a Miami-based energy infrastructure and bitcoin mining company, whose shares have more than doubled in 2026, highlighting investor interest in AI-related power demand and data center infrastructure opportunities.
- Position Adjustments: While Third Point reduced its stake in Taiwan Semiconductor by 35%, Amazon remains its largest equity holding, demonstrating confidence in the company's long-term growth potential despite a 10% reduction during the quarter.
See More
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- Positive Market Outlook: Jefferies analysts believe that companies like Cipher Digital, Hut 8, Riot Platforms, and TeraWulf are converting large power footprints originally secured for Bitcoin mining into AI data center capabilities, which is expected to significantly enhance their market competitiveness.
- Cipher Digital's Strong Position: Jefferies initiated coverage of Cipher Digital with a Buy rating and a $32 price target, anticipating the completion of 384 MW by 2026, with a strong tenant mix supporting its financing capabilities and driving company growth.
- Hut 8's Development Potential: Hut 8 received a Buy rating and a $156 price target, with analysts noting that its 527 MW of secured capacity provides a solid foundation for future lease signings, and partnerships with IG-rated tenants will enhance its financing capabilities.
- TeraWulf's Competitive Edge: TeraWulf was rated Buy with a $28 price target, with analysts highlighting its 606 MW of available power and agreements with FluidStack and Core42 as crucial for future lease conversions, while its proximity to major markets enhances its long-term value.
See More
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- Apple Stock Price Target Increase: Evercore raised Apple's price target from $330 to $365, projecting that even with modest iPhone unit growth, the company can achieve low to mid-teens EPS and free cash flow growth due to durable services growth and ASP tailwinds from premium models.
- Starbucks Price Target Upgraded: TD Cowen raised Starbucks' price target from $106 to $120, citing multiple tangible drivers for positive sales revisions in a strong market backdrop, and forecasting margin recovery as labor investments are prioritized.
See More
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- Significant Market Impact: The $725 billion spending is comparable to the GDP of some mid-sized European countries and nearly matches JPMorgan's market cap, highlighting the substantial influence of AI investments on the energy market, which could drive stock prices higher for related companies.
- Optimistic Industry Outlook: UBS anticipates that spending on power generation capacity will reach $511 billion by 2030, while Evercore ISI is even more bullish, forecasting expenditures of $800 billion, reflecting strong demand for energy infrastructure.
- Diverse Investment Opportunities: Investors should consider energy infrastructure firms like Hut 8, which recently signed a $9.8 billion deal leading to a stock surge, and Fluence Energy, which saw its shares double after securing supply agreements with major tech companies, showcasing the strong demand for energy solutions.
See More
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- Contract Award: Jacobs has secured a contract with energy infrastructure company Hut 8 to provide engineering, procurement, and construction management (EPCM) services for a new AI data center in Texas, marking a significant expansion in the AI infrastructure sector.
- Project Scale: The new data center, named Beacon Point, is located in Nueces County and is structured for phased delivery, aiming for a total capacity of up to 1GW, reflecting Hut 8's anticipated growth in demand for high-performance computing services.
- Technology Implementation: Jacobs will incorporate digital twin technology to simulate and manage the facility's critical systems, supporting the early commissioning process and enhancing operational readiness for AI workloads, ensuring efficient project delivery.
- Ongoing Collaboration: Jacobs' continued involvement with Hut 8 highlights its broader participation in infrastructure projects for technology providers in data centers, semiconductors, and advanced manufacturing, further solidifying its market position.
See More
