10 AI Stocks Jim Cramer and Analysts are Watching

3. Hut 8 Corp. (NASDAQ:HUT)

Average Upside Potential: 37.99%

Number of Hedge Fund Holders: 31

Hut 8 Corp. (NASDAQ:HUT) is one of the 10 AI stocks that Jim Cramer and analysts are watching. On June 6, Roth Capital began coverage of HUT stock with a Buy rating and a $25 price target. The firm noted that the company is evolving into a power-focused digital infrastructure company, with 1.0GW currently energized and 2.6GW under exclusivity.

The firm cited long-term growth visibility supported by bitcoin hosting and high-performance computing colocation. According to Roth, three HPC sites position the company to capture demand related to artificial intelligence, with adjusted EBITDA margins exceeding 60%. The firm noted that established colocation agreements in both bitcoin and HPC create an advantage that could lead to margin expansion and a potential re-rating, assuming effective execution.

Furthermore, on June 10, whilst discussing stocks that are being loved by young investors, Mad Money’s host said:

“But what they’re really interested in are stocks that don’t get coverage, even if they trade millions and millions of shares every day. Look at the volumes of these things. We all ought to be talking about them constantly, stocks like Hut 8… When I think of this cohort, I wonder why we don’t devote hours to this stuff because there’s a hunger for it like no other I’ve ever seen. Any stock that trades 10 million shares a day is worth covering, but there’s no analyst covering them, and nobody knows anything about them. Wall Street ignores them entirely. Now that the IPO window’s open again, I believe we’ll see dozens of these companies come public, and they’ll continue to go uncovered because they have no pedigree and no sponsorship. It’s amazing how irrelevant they are to the older folks, even as younger investors can’t get enough of Hut 8… Now, do you think any analyst on Wall Street cares about… Hut 8 or quantum this, quantum that? But you know what? No one, if they report a number, no one’s going to be disappointed…”

Hut 8 (NASDAQ:HUT) is an integrated provider of energy infrastructure and Bitcoin mining services. The company provides solutions in site development, automation, and energy optimization. It also offers data center services such as colocation, cloud hosting, equipment management, and repair.