Cipher Mining Inc. (CIFR) Positioned to Benefit from AI Data Center Deals

Cipher Mining Inc. (NASDAQ:CIFR) is one of the best bitcoin mining stocks to buy according to Hedge Funds.

The consensus sentiment towards Cipher Mining Inc. (NASDAQ:CIFR) remained positive. As of December 24 closing, the stock has received 12 Buy calls and 1 Hold rating from analysts. Such optimism prevails even after a spike of 250% in share price during 2025. The bullish consensus has resulted in an estimated 1-year average price target of $24.42, implying a further 50.6% upside for investors.

One of the Buy ratings was assigned by Joseph Vafi from Canaccord Genuity, who reaffirmed his views on Cipher Mining Inc. (NASDAQ:CIFR) on December 15. Vafi raised his estimated price target for the stock from $21 to $27, which results in an upside of almost 66.5%.

According to TipRanks, Vafi has based his estimates on various growth factors for Cipher Mining Inc. (NASDAQ:CIFR). He highlighted the company’s pursuit of AI data center deals that will pay off in the future, given a strong anticipated demand. Moreover, the company is well-positioned to capture a strong data center customer base, which would include high-quality hyperscaler tenants like AWS. The analyst also mentioned the company’s recent engagements with counterparties such as FluidStack, which give them a strategic edge. Prospects of AI-led data center colocation at favorable capex and pricing terms also add to the analyst’s bullish sentiment.

Cipher Mining Inc. (NASDAQ:CIFR) develops and operates industrial-scale data centers that are utilized for bitcoin mining. A major player within the bitcoin mining landscape, the company now aims to utilize its asset base for diversification towards AI hosting and high-performance computing infrastructure.

While we acknowledge the potential of CIFR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.