UBS Sees 36% Upside in Former Bitcoin Miners Turning to AI Data Centers

UBS has launched a broad bullish call on a group of former Bitcoin miners that are converting their power assets into AI data center infrastructure.

The five stocks covered by UBS have an average upside of 36% despite a sharp pullback in the sector over recent months, according to a research note dated September 22. The analyst argued that these companies' legacy cryptomining operations have given them a critical advantage in today's computing landscape: access to power.

The most aggressive call is on Hut 8 Corp (HUT), which received a $143 price target implying 45% upside. UBS cited the company's sizeable development pipeline, track record of value creation, and existing leases with high-quality tenants.