Hut 8 Corp. Sees Significant Stock Increase Following Nvidia AI Leases
Shares of AI infrastructure company Hut 8 Corp. (NASDAQ: HUT) experienced a significant 8% increase on Thursday, August 20. This surge in stock value was a response from Wall Street to the confirmation that Nvidia is the technology hyperscaler behind Hut 8’s AI data center lease deals at its Beacon Point campus in Nueces County, Texas.
Hut 8 has successfully secured two consecutive 15-year leases at Beacon Point. The second lease is valued at a staggering $9.8 billion, which has led to the full commercialization of the 1-gigawatt campus and increased contracted IT capacity to 704 megawatts. These long-term Nvidia leases reportedly cover the entire 1-GW Texas data center, with options potentially totaling up to $50 billion over 30 years. CEO Asher Genoot revealed that the company now boasts approximately $27 billion in contracted AI revenue and roughly $1.75 billion in annualized EBITDA. This is a remarkable turnaround for a company that had no contracted AI revenue just a year ago.
The bullish momentum was further amplified by a series of Wall Street upgrades. Morgan Stanley initiated coverage with an Overweight rating and a $263 price target. In addition, Lucid Capital raised its target to $245 and Clear Street increased its target to $170. Other firms such as Piper Sandler, Benchmark, Keefe Bruyette, and B. Riley also issued bullish ratings. Hut 8 is currently pursuing a “power-first” AI infrastructure strategy, aligning its Texas campus with state grid-reliability priorities – a move that investors seem to be responding positively to.
Source: StocksToTrade – Hut 8 Stock Draws Bullish Wall Street Targets on Nvidia AI Deal