Why Hut 8 Stock Soared Today | The Motley Fool

Shares of Hut 8 ( HUT +14.10%) popped on Monday following positive analyst commentary. By the close of trading, Hut 8's stock price was up more than 14%. Image source: Getty Images. Pounding the table on Hut 8 Benchmark analyst Mark Palmer says the artificial intelligence ( AI ) infrastructure developer's stock is a buy and on its way to $85 per share. Palmer applauded Hut 8's recently announced deal with fast-growing AI model builder Anthropic . Hut 8 is partnering with cloud service provider Fluidstack to deliver a minimum of 245 megawatts (MWs) of computing power to Anthropic at its data center campus in Louisiana. NASDAQ: HUT Key Data Points As part of the agreement, Fluidstack entered a 15-year, $7 billion lease with Hut 8. With planned expansions and contract renewal options, Hut 8 could deliver up to 2,295 MW of utility capacity. In turn, Palmer notes that the total contract value could reach as high as $17.7 billion. Solid deal economics Moreover, Palmer appreciates Hut 8's patience in waiting to procure a deal with superior investment returns. He highlighted the fact that Alphabet 's Google is providing a financial backstop that includes lease payments, which helps to reduce counterparty risk and ensure the predictability of Hut 8's cash flows.

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