We recently published Santa Came Early for These 10 Double-Digit Gainers. Hut 8 Corp. (NASDAQ:HUT) is one of the best performers on Monday.
Hut 8 rallied for a second day on Monday, soaring 14.21 percent to finish at $50.39 apiece after receiving bullish coverage and a higher price target from an investment firm.
In a market note, investment firm Benchmark issued a “buy” recommendation on shares of Hut 8 Corp. (NASDAQ:HUT), and raised its price target by 8.9 percent to $85 from $78 previously. The new figure marked a 69 percent upside potential from its latest closing price.
According to Benchmark, the upgrade was based on Hut 8 Corp.’s (NASDAQ:HUT) newly signed $7-billion data center deal, which the investment firm believed would support the company’s transformation to AI and high-performance computing servicing from being a crypto-focused company at present.
“The transaction combined superior deal economics relative to peer deals, long-dated, investment-grade-backstopped cash flows, and multiple layers of embedded expansion optionality across three counterparties—Anthropic, Fluidstack, and Google,” Benchmark said.
Image by Лечение Наркомании from Pixabay
Additionally, Benchmark said that it expects Hut 8 Corp.’s (NASDAQ:HUT) cash flow and power demand for its 245 MW River Bend data center campus to be at $7.6 billion.
While we acknowledge the potential of HUT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
