12 AI Stocks Wall Street Is Watching Now: Nvidia, Micron, and More

10. Hut 8 Corp. (NASDAQ:HUT)

Number of Hedge Fund Holders: 64

For Hut 8, the recent event in focus is its 15-year $9.8 billion AI data center lease at Beacon Point with 352MW capacity. The stock ranks tenth on our list of 12 AI Stocks Wall Street Is Watching Now.

Following the event, on May 6, Piper Sandler analyst Patrick Moley raised the price target on the stock to $127 from $93 and reiterated its Overweight rating.

The company announced on Wednesday that it had signed a 15-year lease for 352 MW of IT capacity at its Beacon Point AI data center campus in Nueces County, Texas. This deal brings Hut 8’s total contracted AI data center capacity to 597 MW across two campuses.

Piper Sandler believes that this deal is proof that Hut’s data center development model is repeatable. The quarter call was also centered around this very deal, which has been struck with an unnamed AI/HPC tenant.

The firm noted that management has confirmed this tenant isn’t Anthropic, Google, or FluidStack, which demonstrates that Hut has secured net new demand and that its development program isn’t reliant on any single tenant, chip architecture, or energy market.

Bottom line, HUT now has contracted 597 MW of IT capacity at ~$1.1B in average NOI/yr across 2 campuses (River Bend + Beacon Point) and still has ~1 GW of sites under joint diligence with Anthropic. The company remains undervalued based on our SOTP valuation of HUT’s power pipeline, ABTC ownership, and balance sheet. Raising PT to $127 from $93 on updated SOTP analysis. Reiterate OW.

Hut 8 Corp. (NASDAQ:HUT), together with its subsidiaries, operates as an energy infrastructure platform. It has also strategically pivoted towards AI data centers and substantial lease agreements.