Nvidia Corporation (NASDAQ:NVDA) is reportedly the previously unnamed customer behind Hut 8 Corp.’s (NASDAQ:HUT) Beacon Point data center leases in Texas. The Financial Times identified Nvidia as the tenant on July 28, citing five people familiar with the arrangement. Nvidia discussed its work with infrastructure partners but neither confirmed nor denied that it was the customer. Hut 8 has also not publicly named the tenant.
That attribution is important, but the contract math also needs equal attention. Hut 8 disclosed on July 20 that a second 15-year lease for 352 megawatts of IT capacity doubled the same investment-grade tenant’s footprint to 704 MW. The two leases give the campus a $19.6 billion base-term contract value. The often-quoted $50.2 billion figure applies only if renewal options are exercised, so it is neither guaranteed revenue nor the present value of a firm $50 billion obligation.
If the FT’s reporting is correct, Nvidia Corporation (NASDAQ:NVDA) is not relevant merely because Beacon Point will use AI chips. As the reported lease counterparty, it would support rent on 704 MW of Hut 8 capacity and could turn that capacity into a deployment channel for customers buying Nvidia systems. The FT said Nvidia could sublease the site to neocloud partners that buy its GPUs and sell AI computing services. No sublease has been announced. Nvidia’s public response instead emphasized DSX, its architecture for designing, building and operating large AI factories with ecosystem partners.
Hut 8’s link is contractual. Tenant rent underpins the $19.6 billion base-term value and the credit case for the project, while Hut 8 Corp. (NASDAQ:HUT) must supply the energized buildings on schedule. The company closed $4.25 billion of non-recourse, investment-grade senior secured notes for Beacon Point in June and expects the first Phase 2 data hall in the second quarter of 2028. It must still manage construction, tenant concentration, and the financing demands of a 1-gigawatt development.
Insider Monkey’s database showed a small decline in hedge funds backing the stock. As of the end of the first quarter of 2026, 60 hedge-fund portfolios reported long positions in HUT at March 31, 2026, down from 64 at December 31, 2025.
The July 15 exchange data showed 324,052,767 NVDA shares sold short, or 1.39% of public float. Nvidia’s latest 10-Q showed no pending stock merger or convertible debt balance that would obviously create an arbitrage short. The low percentage does not indicate a crowded short and provides little basis for a squeeze thesis.
While we acknowledge the risk and potential of NVDA and HUT as investments, 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 NVDA and HUT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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