Cipher Digital (CIFR) Poised For Sales Decline Amid Transition to High-Performance Computing

Cipher Digital (NASDAQ:CIFR) is one of the crypto stocks with huge upside potential. On March 2, Cantor Fitzgerald reiterated an Overweight rating on Cipher Digital (NASDAQ:CIFR) but cut the price target to $24 from $26.

The price target cut comes on the heels of Cipher Mining’s announcement of its transition from Bitcoin mining to high-performance computing. Even though the company is staring at significant loss in the near term, it is focusing on long-term growth through the strategic positioning around the artificial intelligence boom. Analysts anticipate a sales decline this year amid the transition.

Cantor Fitzgerald’s new price target reflects the reduced valuation of Bitcoin mining, while the Overweight rating affirms confidence in the company’s ability to capitalize on AI demand. On the other hand, the long-term outlook remains positive, with management reiterating progress on construction timelines for both the AWS and Fluidstack deals. The company expects rent for the facilities to begin in the second half of the year, with full rent across both sites by early next year.

Cipher Digital (NASDAQ:CIFR) is a high-performance computing (HPC) data center developer and operator that specializes in industrial-scale infrastructure for Bitcoin mining and artificial intelligence (AI) computing.

While we acknowledge the risk and potential of CIFR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CIFR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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