Hut 8 Stocks Soar 9.37% as AI Data Center Bets Grow
Hut 8 Corp.'s stock has seen significant growth of 9.37% as investors bet on its expansion into AI data centers. The company is developing a massive data center to host hardware for Anthropic's $35B cloud compute deal with Lambda, leveraging its prior capacity agreement with Nvidia.
Freedom Capital initiated coverage on Hut 8 with a Buy rating and a $132 price target, citing its pivot from crypto mining to AI workloads. However, the company is taking on significant execution and financing risk with its 15-year, $9.8B lease for phase two of its Beacon Point AI campus in Texas.
The Massachusetts executive order tightening data-center rules raises potential cost and permitting hurdles for operators like Hut 8. Despite these risks, investors remain optimistic about the company's AI pivot, with shares jumping 4% to $81.60 after a Wall Street Journal report on a Nvidia, Anthropic deal.