Morgan Stanley Positive on Cipher Mining (CIFR) Data Center Potential

Cipher Mining Inc. (NASDAQ:CIFR) is one of the 13 hot stocks to buy with the highest upside potential. On February 9, Morgan Stanley started covering Cipher Mining Inc. (NASDAQ:CIFR) with an Overweight rating and a price target of $38, suggesting that Bitcoin companies with established data centers such as Cipher Mining will likely draw interest from infrastructure investors who value long-term, stable cash flows, especially if they manage to secure long-term leases to creditworthy counterparties for their established data centers.

In its report on the stock, Morgan Stanley compared Cipher Mining Inc. (NASDAQ:CIFR)’s business model to data center REITs like Equinix and Digital Realty, but cautioned that Bitcoin companies’ data centers likely won’t reach the same multiples as other pure-play data center companies due to more limited growth potential. The analyst also suggested that contracted data centers developed by Bitcoin companies should ultimately be owned by REIT-like investors who appropriately value long-term, low-risk contracted cash flows.

Cipher Mining, Inc. operates as a Bitcoin mining ecosystem in the U.S. and develops a cryptocurrency business.

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.