Accelerating AI-Driven Capacity Expansion Underpins Hut 8’s Long-Term Growth and Buy Rating

Needham analyst John Todaro has maintained their bullish stance on HUT stock, giving a Buy rating on January 14.

John Todaro has given his Buy rating due to a combination of factors related to Hut 8’s growth visibility and strategic positioning. He highlights increased confidence in the company’s transition toward 2026, supported by its deepening relationship with Anthropic, which has indicated plans to scale up to 2.2 GW of capacity utilizing Hut 8’s infrastructure. As large-scale AI and cloud customers focus more heavily on rapid access to power, Hut 8 appears well placed to capture incremental leasing opportunities from its development pipeline. This is reinforced by substantial planned capacity at the Corpus Christi site, where 700 MW is expected to be available in 2026 and another 300 MW in 2027, and where interest from major hyperscalers has accelerated despite the location’s initial focus on Bitcoin mining.

Todaro also underscores the optionality and upside at River Bend, where the first 330 MW tranche is already under construction with a conservative mid-2027 delivery target, and the location could ultimately support up to an additional 1 GW. While full grid authorization for that expansion is still pending, management’s plan to potentially utilize on-site natural gas pipeline access through a “Bring Your Own Generation” approach provides a credible backup path to unlock further capacity. In addition, the company’s deliberate move to work with established engineering and infrastructure partners like Jacobs and Vertiv, rather than relying on smaller local contractors, is seen as a way to reduce execution risk and secure critical power and cooling equipment. Taken together, these factors form the basis for Todaro’s positive stance on Hut 8’s long-term growth prospects and support his Buy recommendation.

According to TipRanks, Todaro is a top 100 analyst with an average return of 69.7% and a 66.16% success rate. Todaro covers the Financial sector, focusing on stocks such as Robinhood, TeraWulf Inc, and Streamex.

In another report released on January 14, Piper Sandler also maintained a Buy rating on the stock with a $74.00 price target.