Clear Street initiates WhiteFiber stock with Buy rating on AI growth

Investing.com - Clear Street initiated coverage on WhiteFiber Inc (NASDAQ:WYFI) with a Buy rating and a $26.00 price target on Tuesday, representing significant upside from the current trading price of $16.91. The company, with a market capitalization of $616 million, maintains a Fair overall financial health rating according to InvestingPro analysis.

The research firm cited WhiteFiber’s Cloud and High-Performance Computing (HPC) segments as key drivers for rapid growth and multiple expansion potential.

WhiteFiber , which was spun out of Bit Digital (NASDAQ:BTBT), operates as a vertically integrated AI infrastructure platform that combines Tier-3 HPC data centers with GPU-based cloud services.

Clear Street noted that this business model gives investors direct exposure to AI and HPC growth without cryptocurrency volatility, which differentiates it from its former parent company.

The firm highlighted WhiteFiber’s synergistic cloud business as its primary differentiator compared to traditional collocation providers, adding that this strategy is strengthened by a management team experienced in Tier 3 build-outs and development.

In other recent news, WhiteFiber Inc. announced the pricing of its upsized initial public offering at $17 per share. The company offered 9,375,000 ordinary shares, with trading expected to begin on the Nasdaq Capital Market. This IPO marks WhiteFiber’s debut as a standalone entity after being carved out of Bit Digital, Inc. Analysts have shown a positive outlook for WhiteFiber, with Macquarie initiating coverage with an Outperform rating and a price target of $28.00. Meanwhile, B.Riley has also started coverage with a Buy rating, setting a higher price target of $34.00. Both firms highlight WhiteFiber’s role in AI infrastructure, with operations in data centers and AI cloud services. WhiteFiber’s initial public offering follows its recent separation from Bit Digital, which retains a 74.3% ownership stake in the company. These developments reflect growing investor interest in AI infrastructure solutions.

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