{"id":135863,"date":"2026-09-24T19:44:48","date_gmt":"2026-09-24T19:44:48","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/135863\/"},"modified":"2026-09-24T19:44:48","modified_gmt":"2026-09-24T19:44:48","slug":"ubs-turns-bullish-on-five-ai-data-center-stocks-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/135863\/","title":{"rendered":"UBS turns bullish on five AI data center stocks"},"content":{"rendered":"

\"UBS<\/a> UBS turns bullish on five AI data center stocks Proactive uses images sourced from Shutterstock <\/p>\n

UBS has initiated coverage on five AI data center colocation stocks with Buy ratings, citing constrained compute supply and favorable power access positioning the group for rapid growth as AI adoption accelerates. <\/p>\n

The bank started coverage of Hut 8 Mining Corp (TSX:HUT, Unlisted (US):HUTMF), TeraWulf (NASDAQ:WULF), Applied Digital (NASDAQ:APLD), Core Scientific (NASDAQ:CORZ) and Cipher Digital (NASDAQ:CIFR), pointing to their cryptomining legacies and grid access as key advantages. <\/p>\n

UBS estimates the group has already secured roughly 5GW of leased capacity, worth about $125 billion in contracted revenue, with an additional 12GW of expansion potential in the pipeline. <\/p>\n

Time to power remains the primary constraint on scaling compute, UBS said, with global AI infrastructure requirements expected to triple to roughly 260GW of new data center capacity by 2030. <\/p>\n

The bank forecasts average annual EBITDA growth of about 80% across its coverage universe from 2027 to 2029, roughly 10% above Street estimates for 2029. Shares currently trade at 12 to 18 times 2028 EBITDA estimates, which UBS said largely reflects already contracted assets rather than pipeline upside. Price targets imply average upside of 36%. <\/p>\n

UBS noted the stocks have fallen roughly 45% from recent highs, though they remain up about 45% over the last 12 months, weighed down by concerns over frontier model pacing, NIMBY opposition, power uncertainty in Texas and rising yields. <\/p>\n

The bank sees a multi-year catalyst path built around delivery execution, pipeline clarity, new lease agreements, declining risk premiums, potential REIT conversion and strategic value tied to the gap between infrastructure and compute. <\/p>\n

Hut 8 is UBS’s top pick in the group, with a $143 price target implying 45% upside, based on its pipeline size, leasing track record and tenant quality. TeraWulf carries a $24 target (41% upside), supported by its brownfield conversion strategy near population centers. Applied Digital has a $38 target (35% upside), with UBS flagging it as a strong REIT conversion candidate. Core Scientific’s $24 target implies 33% upside, aided by its geographic diversification and AMD tenant relationship. Cipher Mining, with a $23 target and 25% upside, carries the widest risk-reward skew in the group at roughly +145%\/-60%, given its concentration in Texas. <\/p>\n

UBS cautioned that the sector remains early-stage, with only about 15% of contracted capacity delivered so far, and that delivery delays or further rate increases could pressure valuations given the group’s leverage. <\/p>\n","protected":false},"excerpt":{"rendered":"UBS turns bullish on five AI data center stocks Proactive uses images sourced from Shutterstock UBS has initiated…\n","protected":false},"author":2,"featured_media":135864,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[65354,65252,4182,223],"class_list":["post-135863","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-applied-digital","tag-core-scientific","tag-data-center","tag-ubs"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/117327735462513648","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/135863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=135863"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/135863\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/135864"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=135863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=135863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=135863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}