HUT Stock Heads For 4th Week Of Declines: Why This Analyst Thinks Hut 8 Is a Buy

• The analyst said, as per TheFly, that Hut 8 is transitioning its data center capacity from crypto mining to supporting AI workloads, which it views as a "great potential" for the entire group. 
• Despite the target hike and ‘Buy’ rating, Freedom Capital said it prefers Applied Digital shares in the near term given its "broader existing contracts." 
• According to data from Koyfin, the stock has a 12-month average price target of $163.53, implying about 102% upside from its last close. 

Shares of Hut 8 Corp. (HUT) plunged more than 8% at close on Tuesday, putting them on track for a fourth consecutive week of declines amid weak second-quarter results and valuation concerns. 

Meanwhile, Freedom Capital initiated coverage with a ‘Buy’ rating and a $132 price target, implying upside of more than 63% from its last close. 

Why Freedom Capital Is Bullish On HUT Stock

The analyst said, per TheFly, that Hut 8 is transitioning its data center capacity from crypto mining to supporting AI workloads, which it views as a "great potential" for the entire group. 

Despite the target hike and ‘Buy’ rating, Freedom Capital said it prefers shares of Applied Digital (APLD) in the near term, given its "broader existing contracts." The analyst still views Hut 8 as "riskier for now."

Meanwhile, per data from Koyfin, the stock has a 12-month average price target of $163.53, implying about 102% upside from its last close. All 17 analysts covering the stock have a ‘Buy’ or higher rating. 

HUT Stock: Retail Stance

On Stocktwits, retail sentiment around HUT stock was ‘neutral’ at the time of writing, even as message volumes increased about 62% over 24 hours. 

One user said, “$HUT more drop ahead.”

Another user said, “$HUT should've never joined ai, this stock is done.”

However, a third user said, “$HUT in a very recent interview, CEO expects clearance from Texas on its data center project very soon…stock price will rocket.”

According to recent reports, Hut 8’s 1 GW Beacon Point AI campus in Texas appears to be among 23 large-load projects cleared by ERCOT’s latest review with no deficiencies flagged, reducing a key potential hurdle. Initial energization remains on track for the first quarter of 2027, with the campus already backed by an interconnection agreement for its full 1 GW utility capacity.

HUT stock is up more than 57% so far in 2026. 

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