UBS initiates five AI Infrastructure stocks, sees 36% upside
UBS initiated coverage of five AI data center colocation stocks with Buy ratings, citing rapid growth potential. Hut 8 Corp (HUT) has a $143 target, Terawulf Inc (WULF) $24, Applied Digital Corp (APLD) $38, Core Scientific Inc (CORZ) $24, and Cipher Mining Inc (CIFR) $23. UBS forecasts significant revenue growth and EBITDA increases for these companies.
How this was made
The 30-second read
Why it matters
The new coverage provides fresh valuation benchmarks and may trigger buying activity across the listed micro‑caps.
Market read
First‑time analyst initiation on five AI infrastructure stocks, offering clear upside targets and potentially reshaping investor focus on the sector.
What to watch
Potential regulatory or environmental constraints on data‑center expansion.
Background
UBS analyst Ryan Gravett launched coverage of five AI colocation companies, assigning Buy ratings and specific price targets.
Ticker impact
UBS initiated coverage with a Buy rating and $143 price target, implying 45% upside for Hut 8 Corp.
price could rise toward target in the coming months
Analyst cites strong pipeline and tenant leases, providing a clear catalyst.
UBS initiated coverage with a Buy rating and $24 price target, implying 41% upside for Terawulf Inc.
stock may appreciate as investors price in growth assumptions
Analyst highlights brownfield conversion advantage and capacity expansion potential.
UBS initiated coverage with a Buy rating and $38 price target, implying 35% upside for Applied Digital Corp.
price may move toward target as valuation multiples expand
Backlog and REIT conversion prospects provide upside catalysts.
UBS initiated coverage with a Buy rating and $24 price target, implying 33% upside for Core Scientific Inc.
stock could climb as EBITDA growth expectations are priced in
Geographic diversification and AMD capacity expansion are highlighted.
UBS initiated coverage with a Buy rating and $23 price target, implying 25% upside for Cipher Mining Inc.
price may rise toward target as leasing pipeline is valued
Analyst sees undervalued contracted capacity and Texas concentration risk.
Market effects
Analyst coverage may lift the broader AI data‑center and colocation sector.
U.S. micro‑cap AI infrastructure stocks could see increased investor attention.
Highlights continued global demand for AI compute capacity.
Counterpoint
Valuations may be stretched; capacity growth could be slower than projected.
Key entities
- analystUBS
Investment bank providing the coverage and price targets.
- analystRyan Gravett
Analyst leading the AI infrastructure coverage.
