UBS said it sees data-center infrastructure positioned for “rapid growth” with AI adoption expanding and model developers facing limited computing capacity.
- UBS gave CIFR a $23 price target, pointing to capacity deliveries, pipeline clarity and new lease announcements as catalysts.
- TeraWulf received a $24 target, with UBS estimating recent deals imply roughly $12 million in equity value per megawatt.
- Core Scientific received a $24 target, with UBS expecting AMD-backed capacity to diversify its tenant base and support its data-center strategy.
UBS on Wednesday kicked off coverage of four Bitcoin (BTC) miners pivoting into AI data centers with bullish ratings, betting their power assets and development pipelines can unlock a new growth engine beyond crypto mining.
In a note to investors cited by TheFly, UBS analyst Ryan Gravett said the firm sees growing demand for AI computing infrastructure creating a new opportunity for miners with access to power and large development pipelines.
UBS initiated coverage of Cipher Mining (CIFR), TeraWulf (WULF), Hut 8 (HUT) and Core Scientific (CORZ) with a ‘Buy’ rating. However, all four stocks traded lower in morning trade amid broader market weakness.
| Company | Ticker | UBS Rating | Price Target |
| Cipher Mining | CIFR | Buy | $23 |
| TeraWulf | WULF | Buy | $24 |
| Hut 8 | HUT | Buy | $143 |
| Core Scientific | CORZ | Buy | $24 |
According to Gravett, data-center infrastructure stocks are positioned for “rapid growth” as AI adoption expands and model developers remain constrained by limited capacity.
UBS is not alone in its optimism around Bitcoin miners pivoting towards AI workloads. Last week, Wells Fargo also initiated coverage around the same four companies. It cited contracted power, tenant quality and execution as key differentiating factors.
UBS Sees Catalyst-Rich Setup For Cipher Mining
While bullish on Cipher Mining, UBS said uncertainty around the timeline for bringing power online in Texas has weighed on the stock. However, it said that has also created an attractive risk-reward setup.
According to UBS, near-term catalysts for CIFR stock include capacity deliveries, greater clarity around its development pipeline and additional lease announcements.
CIFR stock edged 0.3% lower in morning trade. On Stocktwits, retail sentiment around the firm fell to ‘neutral’ from ‘bullish’ territory over the past day.
TeraWulf Deals Offer Blueprint For AI Growth
TeraWulf received a $24 target price, with UBS stating that the company’s recent transactions establish attractive economics and provide a “repeatable blueprint for future growth.”
The firm estimated that recent deals imply roughly $12 million in equity value per megawatt, with up to $30 per share in potential value creation if TeraWulf fully leases its current development portfolio.
WULF stock fell more than 1.5% in morning trade. On Stocktwits, retail sentiment around the company trended in ‘bearish’ territory over the past day.
Hut 8, Core Scientific Build Out AI Pipelines
For HUT stock, UBS cited the economics of its contracted data-center portfolio and high-credit-quality tenants. The bank said the structure also limits exposure to delivery penalties and construction cost overruns.
Key catalysts include final Base Load designation and initial energization at Beacon Point, followed by capacity deliveries and new lease announcements.
Core Scientific received a $24 target. UBS expects AMD-backed capacity to diversify its tenant base and improve investor confidence in its data-center strategy.
HUT stock fell nearly 2% in morning trade, with retail sentiment trending in the ‘neutral’ zone over the past day, while CORZ stock traded flat but saw retail sentiment trending in ‘bullish’ territory.
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