Cipher Digital Stock Sinks To 52-Week Low - Here's Why

Cipher Digital Inc. (NASDAQ:CIFR) stock plunged nearly 12% Thursday, hitting a new 52-week low as concerns over artificial intelligence spending and financing weighed on technology stocks.

The Nasdaq fell 2.71%, while the S&P 500 declined 1.27%.

AI Spending Concerns Pressure Cipher Digital

Cipher Digital fell alongside AI infrastructure stocks as investors questioned the capital needed to support rapid industry expansion.

Speaking to CNBC Thursday, NVIDIA Corp. (NASDAQ:NVDA) CEO Jensen Huang said demand for AI cloud services remains exceptionally strong. However, limited working capital is restricting growth.

Huang said demand for financing continues to outpace available capital across the AI industry.

Technology Stocks Lead Market Declines

Technology was Thursday’s worst-performing sector, falling 3.15%. Meanwhile, investors shifted toward defensive stocks, lifting consumer staples 2.78% and utilities 1.56%.

Cipher Digital, which develops and operates high-performance computing data centers, remains sensitive to changes in AI infrastructure spending and financing conditions.

The stock also underperformed the broader technology sector, reflecting heightened selling pressure.

Technical Analysis: Cipher Digital Stock Remains Oversold

Cipher Digital shares traded 37.5% below their 20-day simple moving average (SMA) of $12.94 and 55.1% below their 200-day SMA of $18.02.

The 50-day SMA of $15.24 remains below the 200-day average, reinforcing the bearish trend.

Meanwhile, the relative strength index (RSI) stood at 20.44, signaling deeply oversold conditions. Although this raises the possibility of a short-term rebound, selling pressure remains strong.

The previous 52-week low of $8.23 is now a potential resistance level, while the 20-day SMA at $12.94 presents another hurdle.

Earnings And Analyst Outlook

Cipher Digital is scheduled to report third-quarter results Nov. 2.

Analysts expect a loss of 26 cents per share on revenue of $38.13 million, compared with year-earlier revenue of $71.71 million.

The stock carries a Buy consensus rating and an average analyst price forecast of $28.50.

Cantor Fitzgerald recently maintained its Overweight rating but lowered its price forecast to $19. Morgan Stanley also maintained its Overweight rating while reducing its forecast to $51.50. UBS initiated coverage with a Buy rating and a $23 forecast.

CIFR Price Action

Cipher Digital shares fell 11.71% to $8.06 at the time of publication Thursday, marking a new 52-week low, according to Benzinga Pro data.

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