UBS: Bitcoin Miners Pivot to AI Hosting, Five Stocks Average 36% Gain

TechFlow reports, according to Chaoxiang Research, UBS Group noted in its Sept. 22, 2026 research report that it covers five AI data center hosting stocks transitioning from bitcoin mining for the first time, assigning a Buy rating to all. The five companies have collectively secured 4.8GW of contracted capacity, with an additional expansion pipeline of approximately 12GW, though currently only delivering about 720MW. The average upside to the price target stands at 36%, with targets set at $143 for Hut 8, $24 for TeraWulf, $38 for Applied Digital, $24 for Core Scientific, and $23 for Cipher Digital.

UBS states that the scarcity of power interconnection timelines supports rental rates and development yields. The tenant mix is improving from emerging cloud providers to high-credit-rating clients, with Meta, Amazon, AMD, Nvidia, and Anthropic signing contracts in succession. Hut 8 and TeraWulf show the highest pipeline visibility, Applied Digital and Cipher Digital are experiencing the fastest improvement in tenant quality, and Core Scientific and Applied Digital lead in delivery progress. All five companies currently trade at 12 to 18 times 2028 EBITDA, below the approximately 19x multiple for data center REITs.