Evaluating Hut 8 (HUT) After Its 15‑Year, Multibillion‑Dollar AI Hosting Deal With Fluidstack

Hut 8 (HUT) just reshaped its story with a 15 year, 7 billion dollar lease to Fluidstack for 245 megawatts of AI hosting capacity at its River Bend campus in Louisiana.

See our latest analysis for Hut 8.

The announcement lands on top of an already strong run, with the latest share price at $44.12 and a year to date share price return of about 102 percent, signalling that investors see growing upside in Hut 8’s pivot toward AI infrastructure.

If this kind of AI driven rerating has your attention, it could be a good moment to explore other high growth tech and AI names using our high growth tech and AI stocks as a hunting ground for the next potential winner.

With the stock already having doubled this year and still trading at a steep discount to bullish analyst targets, the key question now is whether Hut 8 remains mispriced or if the market is already accounting for its AI supercharged growth.

Most Popular Narrative: 21.4% Undervalued

With Hut 8 closing at $44.12 against a narrative fair value near $56, the most widely followed view sees meaningful upside from its expanding power platform.

Analysts have modestly trimmed their average fair value estimate for Hut 8 to approximately $56 from about $58, even as they lift headline price targets into the $60 to $65 range on expectations that the company will unlock greater value from its multi gigawatt development pipeline and expanding high performance computing opportunities.

Read the complete narrative.

Want to see what turns a volatile miner into a potential infrastructure compounder? The narrative leans on aggressive revenue expansion and rich future earnings multiples. Curious which assumptions really carry that valuation load and how far margins can stretch in an AI hungry world? Read on to unpack the full playbook behind this fair value call.

Result: Fair Value of $56.13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained Bitcoin weakness or regulatory backlash against fossil fuel based power could still derail Hut 8’s ambitious AI and multi gigawatt expansion path.

Find out about the key risks to this Hut 8 narrative.

Another Lens On Value

On simple earnings math, Hut 8 looks stretched. Its current P E ratio of 23.4 times sits above our fair ratio of 7.9 times and well ahead of peers on a fundamental basis, even if it still trades below the broader US Software average. Is the market already paying up for perfect execution?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Hut 8 Narrative

If this perspective does not quite match your own, or you would rather dig into the numbers yourself, you can build a fresh view in minutes: Do it your way.

A great starting point for your Hut 8 research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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