Hut 8 (HUT) Jumps 14% on Bullish Rating, PT

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.

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 risk and potential of HUT 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 HUT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.