Nvidia Deal Sends Hut 8 Stock Soaring 6% Amid AI Infrastructure Push

Hut 8's stock price jumped 6% last week after securing long-term data center leases with Nvidia. The company has locked in a deal covering its entire 1-gigawatt Texas data center, with base terms and renewal options that could total up to $50 billion over 30 years.

The deal marks a significant shift for Hut 8, which was once viewed mainly as a Bitcoin miner. The company's Beacon Point campus in Nueces County, Texas, is now fully commercialized after signing a second 15-year lease worth $9.8 billion.

Wall Street analysts have taken notice of the deal, with Piper Sandler raising its price target to $143 and Benchmark lifting its target to $195. Morgan Stanley initiated coverage with an Overweight rating and a $263 target, arguing that Hut 8 stock is being mispriced given the quality of its hyperscaler-style contracts.