Hut 8 Corp. rated Buy with $140-150 target on AI infrastructure contracts and Nvidia lease.

Hut 8 Corp. is rated Buy with a 12-month price target of $140-150, reflecting its undervaluation compared to its extensive AI infrastructure contract pipeline. The company holds $26.6 billion in long-term AI data center contracts and a $9.8 billion lease agreement with Nvidia, signaling a strategic shift from cryptocurrency mining to digital infrastructure. Its strong project financing and simplified balance sheet reduce dilution and risk, although revenue growth depends on future projects River Bend and Beacon Point, expected to impact earnings in 2027. Key risks include construction timing and competition in the AI infrastructure sector.