Hut 8 (HUT) Following Benchmark Upgrade And AI Leases Looks Cheap Or Priced In
Benchmark’s recent upgrade of Hut 8 (HUT) has drawn fresh attention to the stock, after the company reported very large year over year revenue growth and signed long term A.I. focused data center leases.
See our latest analysis for Hut 8.
Despite the Benchmark upgrade and new A.I. data center leases, Hut 8’s 30-day share price return is down 14.27%, while the 90-day share price return is 45.28% and the year-to-date share price return is 100.96%. Over the past year, total shareholder return is very large at about 4.6x. This helps explain why recent weakness may look more like a pause after a strong run rather than a complete shift in sentiment.
If you are interested in other A.I. infrastructure stories, this could be a good moment to scan the market using our screener of 52 AI infrastructure stocks
After Hut 8’s sharp pullback and with the stock trading below the average analyst price target range, the real tension is whether fair value now sits closer to recent trading levels or nearer to those higher estimates.
Most Popular Narrative: 19% Undervalued
With Hut 8 last closing at $103.03 against a narrative fair value of $126.94, the current gap reflects how much faith investors place in the company’s power first, AI focused build out.
The Power First strategy, featuring sizable pipeline origination (10.8 GW under diligence, 3.1 GW under exclusivity) and dual-purpose sites for both Bitcoin mining and AI compute, provides scalability and flexibility to benefit from rising institutional adoption of digital assets and accelerating demand for clean energy-powered blockchain infrastructure, bolstering future revenue and earnings growth.
Want to see what sits behind that optimism? The narrative leans on rapid revenue expansion, a sharp swing in margins, and a premium earnings multiple. Curious which assumptions really carry that $126.94 figure?
Result: Fair Value of $126.94 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Hut 8’s story could change quickly if large AI projects are delayed, or if heavier reliance on natural gas power brings tougher regulation and higher costs.
Find out about the key risks to this Hut 8 narrative.
Another View: Hut 8 Looks Expensive On Sales
While the Hut 8 narrative fair value of $126.94 suggests upside, the current P/S ratio of 40.8x is very high compared with the US Software industry at 3.5x and peers at 1.8x. It also sits far above a fair ratio of 15.7x, which points to elevated valuation risk if sentiment cools.
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Does the mix of optimism and concern around Hut 8 fit with your own view? Take a moment to review the data, weigh both sides, and see what stands out in the 1 key reward and 2 important warning signs
Looking for more investment ideas beyond Hut 8?
If Hut 8 has sharpened your focus on opportunity, do not stop here. Broaden your watchlist with other stocks that fit clear, data backed themes.
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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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