Is the Hut 8 Rally Sustainable?
Hut 8 has a multigigawatt pipeline of data center projects in the works, and lucrative hyperscaler deals that have fueled a meaningful rally.
Overview
Hut 8 (NASDAQ: HUT) is riding the artificial intelligence (AI) wave. The company that began as a Bitcoin (CRYPTO: BTC) miner and evolved into a neocloud provider has more than doubled its share price year to date as more investors recognize that gigawatts are the new currency of the AI boom.
The advanced chips needed to support artificial intelligence are best deployed in massive clusters housed in specialized data centers. Those data centers, in turn, require prodigious amounts of electricity to operate. Hut 8 is set up to deliver that infrastructure, and the market has been rewarding it for that -- but does its rally have more room to run?
Image source: Getty Images
Details
Source
Originally published at www.fool.com.
Related Articles
- A new bill would cap Medicare enrollees’ annual expenses at $5,000 — and could cost the government ‘tens of billions’
- Trump says Iran violated ceasefire with drone attacks on Strait of Hormuz ships
- Insurers shifted roof replacement costs onto homeowners thanks to a new federal rule — just in time for hail and hurricane season