AI Data Center Buildout And Tokenization Will Unlock Major Long Term Upside

Analysts have adjusted their fair value estimate for Galaxy Digital from $60.00 to $57.00, reflecting updated views on discount rates, revenue growth, profit margins, and future P/E assumptions following a combination of recent price target increases and cuts across the Street.

Analyst Commentary

Recent Street research on Galaxy Digital has centered on how short term sentiment swings are intersecting with the stock's valuation, execution against growth initiatives, and exposure to high performance computing and digital infrastructure trends. While there have been both price target increases and reductions, several research notes frame the recent volatility as an opportunity for investors who are focused on long term fundamentals rather than near term trading momentum.

One recent report highlights that high performance computing stocks have been under pressure as momentum cooled and concerns emerged around a potential cloud offering linked to Meta. Despite this, the report points out that existing contracted capacity through CoreWeave cannot simply be unwound or easily resold, and it does not view the headlines as a clear signal of weaker demand. Within this context, Galaxy Digital is described as having been hit harder than many peers because of its more direct link to CoreWeave, which is a key factor behind the current debate on valuation.

Other Street reports have focused on refining price targets for Galaxy Digital as analysts revisit discount rates, revenue assumptions, and margin expectations. Some have adjusted targets lower, while others have moved them higher, leading to a wide range of fair value opinions across the Street. For readers, the important takeaway is that there is no single consensus view, and sentiment appears to be driven as much by risk appetite and sector flows as by company specific modeling changes.

When looking across the recent research, bullish analysts tend to focus on how Galaxy Digital is positioned within digital asset infrastructure and related services, especially where the business ties into high performance computing and data center capacity. The combination of these drivers, together with how the stock trades relative to Street fair value estimates, is at the core of the current bullish thesis.

Bullish Takeaways

• Bullish analysts describe the recent weakness in Galaxy Digital as overdone, particularly given that key contracts around high performance computing capacity, including those linked to CoreWeave, are viewed as committed and not easily reversed, which underpins parts of the company’s revenue visibility.
• Some bullish research highlights that Galaxy Digital has been hit harder than many peers during the recent pullback, which they see as creating a more appealing entry point for investors who believe the stock may eventually trade closer to updated fair value assumptions and P/E frameworks.
• Positive commentary points to Galaxy Digital’s exposure to high performance computing and digital infrastructure as a potential medium term growth driver, with the current share price seen as not fully reflecting this exposure in some analysts’ valuation work.
• Where price targets have been raised, bullish analysts generally link their adjustments to refined models around execution on existing contracts and projects, suggesting that Galaxy Digital could warrant a higher valuation multiple if it maintains discipline on costs and capital allocation.

What’s in the News for Galaxy Digital

• Galaxy Digital revised its internal probability estimate for the CLARITY Act passing in 2026 to 50%, down from 60%, citing limited U.S. Senate floor time and a crowded legislative calendar as the main constraints, according to company commentary on prediction market activity related to the bill.
• Galaxy Digital was added to the Russell 1000 Index as part of the June 2026 reconstitution. The company framed this as aligning with its positioning in cryptocurrency and AI infrastructure and its operation of one of the largest data center campuses in the US. Source: Russell index reconstitution announcements.
• Executives at Galaxy Digital highlighted that the stock is, in their view, undervalued and pointed to valuation challenges around its combined crypto and data center businesses. The company repurchased US$65 million of stock in the first quarter and retains authorization for up to US$200 million in buybacks. The Helios data center campus has started generating revenue with plans for up to 800 megawatts of additional capacity next year. Source: company commentary.
• Galaxy Digital invested in Digital Prime Technologies, the firm behind the Tokenet institutional digital asset lending platform, which offers securities lending style workflows and collateral tools for institutional crypto lending. Following the announcement, Galaxy Digital’s stock fell more than 3%, which was linked in part to broader technology sector weakness. Source: company and sector reports.
• Galaxy Digital was added to multiple Russell indices, including the Russell 3000, Russell 2500, Russell Midcap, Russell 1000 and related value and completeness benchmarks. This broadened index coverage of the stock across small and mid cap as well as value universes. Source: Russell index constituent updates.

Valuation Changes for Galaxy Digital

• Fair Value: The fair value estimate for Galaxy Digital moved from $60.00 to $57.00, a modest downward revision that reflects the updated modeling inputs.
• Discount Rate: The discount rate was adjusted from 9.21% to 8.80%, indicating a slightly lower required return in the revised analysis.
• Revenue Growth: The modeled revenue growth rate shifted from 75.31% to 16.84%, representing a very large reduction in forecast growth expectations.
• Profit Margin: The profit margin assumption changed from 24.29% to 25.12%, indicating a small upward adjustment to projected profitability.
• Future P/E: The future P/E multiple moved from 59.27x to 0.73x, reflecting a very large downward reset in the valuation multiple applied in the model.