Hut 8 (HUT) Price Target Raised by Analysts After Major Google-Backed AI Partnership

Leading cryptocurrency mining company Hut 8 Corp. (NASDAQ: HUT) received significant analyst upgrades following the announcement of a strategic artificial intelligence (AI) infrastructure deal backed by Google. Financial firms Cantor Fitzgerald and Canaccord Genuity both increased their price targets for HUT stock, reflecting heightened confidence in the company's diversified business model and future revenue streams. The deal involves Hut 8 supplying high-performance computing (HPC) infrastructure for AI and machine learning workloads to a client supported by Google Cloud. This move positions Hut 8 to capitalize on the booming AI sector, diversifying its income beyond Bitcoin mining. Analysts highlighted the deal's potential to generate substantial high-margin revenue, improve the company's power utilization, and enhance its overall financial stability. The partnership is seen as a key strategic pivot that leverages Hut 8's existing energy assets and operational expertise in a new, high-growth market. The analyst consensus suggests that Hut 8's foray into AI infrastructure de-risks its business model and creates a new valuation framework, combining its Bitcoin mining operations with high-margin HPC services. This dual focus is expected to drive long-term shareholder value.