Jefferies Initiates Coverage on AI Data Center Developers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 14 2026
0mins
Source: seekingalpha
- 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.
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Analyst Views on CIFR
Wall Street analysts forecast CIFR stock price to rise
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 24.590
Low
18.00
Averages
25.75
High
30.00
Current: 24.590
Low
18.00
Averages
25.75
High
30.00
About CIFR
Cipher Digital Inc., formerly Cipher Mining Inc., is a high-performance computing (HPC) data center developer and operator. The Company is dedicated to developing and operating industrial-scale data centers engineered for computing. Its vertical integration spans critical stages of the data center value chain, including land and power origination and interconnection, site development, data center design and construction, oversight and ongoing facility operations. It also operates and maintains energy-intensive data center facilities. Its data center portfolio consists of 4.2 gigawatts (GW) of capacity across 10 sites, at various stages of interconnection. The Company is engaged in developing 600 megawatts (MW) of HPC data center facilities across two sites for hyperscaler tenants and operates approximately 207 MW of power at one bitcoin mining data center in Texas. It also maintains a pipeline of approximately 3.4 GW across seven sites in Texas and one additional site in Ohio.
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.
Cipher Digital's AI Data Center Potential is Huge
- Long-Term Contract Advantage: Cipher Digital secures stable revenue streams through long-term contracts with major tech companies, with plans to energize 2.5 gigawatts between 2028 and 2029, highlighting its critical role in AI infrastructure.
- Rapid Deployment Capability: The company's landlord model reduces data center construction costs, enabling faster deployment compared to competitors, with 270 megawatts of energy expected to be ready by 2027, enhancing its market competitiveness.
- Significant Revenue Potential: The 15-year, $5.5 billion contract with Amazon is projected to generate $367 million annually, indicating Cipher Digital's long-term profitability and market appeal in the AI data center sector.
- Stock Growth Potential: Despite a 29% year-over-year revenue decline in Q1, Cipher Digital's stock has surged 440% over the past year, reflecting market confidence in its future growth, with rapid revenue scaling expected as more data centers come online.
See More
Cipher Digital's Growth Potential in AI Data Centers
- Significant Stock Performance: Since rebranding in February 2026, Cipher Digital's stock has surged by 40%, indicating strong growth potential in AI infrastructure, particularly in securing long-term contracts with major tech companies.
- Stable Revenue Forecast: The company generates revenue by building AI data centers and signing long-term contracts, with expectations to earn $367 million annually from its $5.5 billion deal with Amazon, further solidifying its market position.
- Clear Competitive Advantage: Cipher Digital's landlord model reduces data center construction costs, allowing for faster deployment compared to competitors like Iren and Nebius, thereby enhancing profitability and market positioning.
- Future Growth Potential: Despite a 29% year-over-year revenue decline in Q1, Cipher Digital anticipates adding 2.5 gigawatts of energy between 2028 and 2029, with rapid revenue growth expected as more data centers come online, potentially outperforming the S&P 500.
See More
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- Product and Mining Revenue: Product revenue was $42.9 million, a sharp decline from $164.9 million in Q4 2025, primarily due to reduced computing power sales and weak market demand, while mining revenue stood at $19.1 million, demonstrating resilience despite Bitcoin price fluctuations.
- Cryptocurrency Treasury: As of March 31, 2026, the company's cryptocurrency treasury reached a record high of 1,807.60 BTC and 3,951.53 ETH, indicating a strong asset base amid market uncertainties.
- Operational Efficiency Improvement: The company achieved an 11% sequential decline in general and administrative expenses in Q1, optimizing resource allocation and enhancing flexibility to navigate market uncertainties, while also collecting approximately $42 million in customer cash recoveries.
See More
Canaan Inc. Reports Q1 2026 Financial Highlights
- Revenue Performance: Total revenue for Q1 2026 was $62.7 million, aligning with the company's prior guidance, although significantly down from $196.3 million in Q4 2025, indicating weakened market demand.
- Bitcoin Production: Canaan produced 257 bitcoins in Q1 despite facing volatility in bitcoin prices and weather-related disruptions in North America, demonstrating resilience in its production capabilities.
- Energy Infrastructure Expansion: The acquisition of a 49% stake in ABC Projects in West Texas enhances the company's energy-compute infrastructure, expected to boost operational hashrate by approximately 4.4 EH/s, reinforcing strategic access to power resources.
- Improved Financial Position: As of the end of Q1 2026, the company held $43.5 million in cash, a significant drop from $80.8 million at the end of 2025, but liquidity improved with approximately $42 million in customer cash collections in Q2.
See More
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- Stock Surge: Keel Infrastructure's stock has surged 75% year-to-date, nearing a $2.5 billion market cap, indicating strong investor confidence in its pivot to AI infrastructure and reflecting positive market expectations for crypto miners transitioning to new sectors.
- Power Pipeline Advantage: With a 2.2-gigawatt power pipeline, including a 1.3-gigawatt project in Scrubgrass, Pennsylvania, Keel is well-positioned to generate stable annual revenue for its AI cloud services, further solidifying its market position among tech giants.
- Leasing Agreement Outlook: Keel expects to sign three leasing agreements this year for AI data centers with capacities of 350 megawatts, 110 megawatts, and 18 megawatts, and while it has yet to secure a major tech partnership, these potential contracts could significantly enhance its market value.
- Capital Raising Strategy: Operating in a capital-intensive industry, Keel raised $500 million through convertible notes with a 1.375% annual yield, providing necessary funding for future infrastructure expansion while minimizing costs associated with AI chip supply.
See More
Keel Infrastructure's Growth Dynamics
- Pipeline Expansion: Keel Infrastructure has a 2.2 gigawatt pipeline and expects to sign leases with three tech tenants by year-end, which will provide stable revenue streams and enhance market competitiveness.
- Sufficient Liquidity: The company currently holds $533 million in liquidity, sufficient to support lease execution at three sites, demonstrating its flexibility in capital management and ability to respond to market changes.
- Strong Market Performance: Keel's stock has risen 75% year-to-date, approaching a $2.5 billion market cap, reflecting investor confidence in its pivot to AI infrastructure, with a remarkable 260% increase over the past year.
- Future Growth Potential: With the ongoing demand for AI data centers, Keel anticipates that its 1.3 gigawatt Scrubgrass site will be a key driver of long-term growth, although the approval process is lengthy, successful completion will significantly enhance the company's market position.
See More
Cipher Digital's AI Data Center Potential is Huge
- Long-Term Contract Advantage: Cipher Digital secures stable revenue streams through long-term contracts with major tech companies, with plans to energize 2.5 gigawatts between 2028 and 2029, highlighting its critical role in AI infrastructure.
- Rapid Deployment Capability: The company's landlord model reduces data center construction costs, enabling faster deployment compared to competitors, with 270 megawatts of energy expected to be ready by 2027, enhancing its market competitiveness.
- Significant Revenue Potential: The 15-year, $5.5 billion contract with Amazon is projected to generate $367 million annually, indicating Cipher Digital's long-term profitability and market appeal in the AI data center sector.
- Stock Growth Potential: Despite a 29% year-over-year revenue decline in Q1, Cipher Digital's stock has surged 440% over the past year, reflecting market confidence in its future growth, with rapid revenue scaling expected as more data centers come online.
See More
Cipher Digital's Growth Potential in AI Data Centers
- Significant Stock Performance: Since rebranding in February 2026, Cipher Digital's stock has surged by 40%, indicating strong growth potential in AI infrastructure, particularly in securing long-term contracts with major tech companies.
- Stable Revenue Forecast: The company generates revenue by building AI data centers and signing long-term contracts, with expectations to earn $367 million annually from its $5.5 billion deal with Amazon, further solidifying its market position.
- Clear Competitive Advantage: Cipher Digital's landlord model reduces data center construction costs, allowing for faster deployment compared to competitors like Iren and Nebius, thereby enhancing profitability and market positioning.
- Future Growth Potential: Despite a 29% year-over-year revenue decline in Q1, Cipher Digital anticipates adding 2.5 gigawatts of energy between 2028 and 2029, with rapid revenue growth expected as more data centers come online, potentially outperforming the S&P 500.
See More
Canaan Inc. Reports Q1 2026 Financial Results
- Revenue Performance: Canaan Inc. reported total revenues of $62.7 million for Q1 2026, aligning with previous guidance, yet significantly down from $196.3 million in Q4 2025, reflecting tightened market demand and Bitcoin price volatility.
- Product and Mining Revenue: Product revenue was $42.9 million, a sharp decline from $164.9 million in Q4 2025, primarily due to reduced computing power sales and weak market demand, while mining revenue stood at $19.1 million, demonstrating resilience despite Bitcoin price fluctuations.
- Cryptocurrency Treasury: As of March 31, 2026, the company's cryptocurrency treasury reached a record high of 1,807.60 BTC and 3,951.53 ETH, indicating a strong asset base amid market uncertainties.
- Operational Efficiency Improvement: The company achieved an 11% sequential decline in general and administrative expenses in Q1, optimizing resource allocation and enhancing flexibility to navigate market uncertainties, while also collecting approximately $42 million in customer cash recoveries.
See More
Canaan Inc. Reports Q1 2026 Financial Highlights
- Revenue Performance: Total revenue for Q1 2026 was $62.7 million, aligning with the company's prior guidance, although significantly down from $196.3 million in Q4 2025, indicating weakened market demand.
- Bitcoin Production: Canaan produced 257 bitcoins in Q1 despite facing volatility in bitcoin prices and weather-related disruptions in North America, demonstrating resilience in its production capabilities.
- Energy Infrastructure Expansion: The acquisition of a 49% stake in ABC Projects in West Texas enhances the company's energy-compute infrastructure, expected to boost operational hashrate by approximately 4.4 EH/s, reinforcing strategic access to power resources.
- Improved Financial Position: As of the end of Q1 2026, the company held $43.5 million in cash, a significant drop from $80.8 million at the end of 2025, but liquidity improved with approximately $42 million in customer cash collections in Q2.
See More
Keel Infrastructure Transitions to AI Market, Stock Surges 75%
- Stock Surge: Keel Infrastructure's stock has surged 75% year-to-date, nearing a $2.5 billion market cap, indicating strong investor confidence in its pivot to AI infrastructure and reflecting positive market expectations for crypto miners transitioning to new sectors.
- Power Pipeline Advantage: With a 2.2-gigawatt power pipeline, including a 1.3-gigawatt project in Scrubgrass, Pennsylvania, Keel is well-positioned to generate stable annual revenue for its AI cloud services, further solidifying its market position among tech giants.
- Leasing Agreement Outlook: Keel expects to sign three leasing agreements this year for AI data centers with capacities of 350 megawatts, 110 megawatts, and 18 megawatts, and while it has yet to secure a major tech partnership, these potential contracts could significantly enhance its market value.
- Capital Raising Strategy: Operating in a capital-intensive industry, Keel raised $500 million through convertible notes with a 1.375% annual yield, providing necessary funding for future infrastructure expansion while minimizing costs associated with AI chip supply.
See More
Keel Infrastructure's Growth Dynamics
- Pipeline Expansion: Keel Infrastructure has a 2.2 gigawatt pipeline and expects to sign leases with three tech tenants by year-end, which will provide stable revenue streams and enhance market competitiveness.
- Sufficient Liquidity: The company currently holds $533 million in liquidity, sufficient to support lease execution at three sites, demonstrating its flexibility in capital management and ability to respond to market changes.
- Strong Market Performance: Keel's stock has risen 75% year-to-date, approaching a $2.5 billion market cap, reflecting investor confidence in its pivot to AI infrastructure, with a remarkable 260% increase over the past year.
- Future Growth Potential: With the ongoing demand for AI data centers, Keel anticipates that its 1.3 gigawatt Scrubgrass site will be a key driver of long-term growth, although the approval process is lengthy, successful completion will significantly enhance the company's market position.
See More
