Hut 8 Signs $7 Billion Data Center Deal with Anthropic
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Data Center Spending Forecast: According to McKinsey, data center spending is projected to reach $7 trillion by 2030, indicating strong demand for computing power that could drive investments and growth in related companies.
- Hut 8 Major Agreement: Hut 8 signed a 15-year, $7 billion deal with Anthropic to supply 245 megawatts of data center capacity, expected to scale up to nearly 2.3 gigawatts, showcasing its strong position in the AI infrastructure market.
- AMD Growth Potential: AMD anticipates a 35% compound annual growth rate in revenue over the next three to five years, with a 36% year-over-year revenue increase in Q3, indicating strong performance in the data center and gaming markets that could drive stock price appreciation.
- Bitcoin Mining Support: Hut 8's revenue surged 91% year-over-year to $83 million in Q3, primarily driven by Bitcoin mining, which provides financial support for its AI data center investments and enhances the company's financial stability.
Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMD is 284.10 USD with a low forecast of 200.00 USD and a high forecast of 377.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
36 Analyst Rating
27 Buy
9 Hold
0 Sell
Strong Buy
Current: 251.310
Low
200.00
Averages
284.10
High
377.00
Current: 251.310
Low
200.00
Averages
284.10
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
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.
