UBS Initiates Bullish Coverage on AI Data Center Stocks, Sees Up to 45% Upside

UBS has initiated coverage on five AI data center colocation stocks with 'Buy' ratings, citing rapid growth potential due to accelerating AI adoption and constrained computing capacity 🔗.

Key Highlights:

• Hut 8 Corp (HUT): Buy rating, $143 PT (45% upside), strong pipeline and value creation track record 🔗.
• Terawulf Inc (WULF): Buy rating, $24 PT (41% upside), differentiating ability to convert brownfield sites 🔗.
• Applied Digital Corp (APLD): Buy rating, $38 PT (35% upside), substantial 1.3 GW backlog 🔗.

Power access is noted as the primary limiting factor for scaling compute infrastructure. This analyst action signals strong conviction in the AI infrastructure sector's growth trajectory. 🔗