Craig-Hallum initiates WhiteFiber stock with Buy rating on AI data center strategy

Published 02/09/2025, 15:08
Craig-Hallum initiates WhiteFiber stock with Buy rating on AI data center strategy

Investing.com - Craig-Hallum initiated coverage on WhiteFiber Inc (NASDAQ:WYFI) with a Buy rating and a $25.00 price target on Tuesday. The target represents significant upside from the current trading price of $17.40, with analysts setting an even more optimistic high target of $34.00. InvestingPro data shows the company maintains a healthy gross profit margin of 62.09%.

The research firm highlighted WhiteFiber’s unique position in the artificial intelligence infrastructure market following its recent spin-off from Bit Digital.

Craig-Hallum noted the company’s retrofitted data center model enables conversions twice as fast and 40% cheaper than traditional methods, addressing the growing gap between AI demand and available powered land.

The firm emphasized WhiteFiber’s GPU-as-a-Service platform with "leading edge capabilities" that cater to inference-first operators seeking deployment in targeted markets.

WhiteFiber also operates multiple high-performance computing facilities and advanced ASICs for a large gaming platform, positioning it to serve "massive, relatively underserved markets in the broader AI ecosystem," according to Craig-Hallum.

In other recent news, WhiteFiber Inc has received significant attention from multiple research firms, all initiating coverage with positive ratings. Roth/MKM started with a Buy rating and a $25.00 price target, emphasizing the company’s cost-effective strategy of converting existing warehouses into Tier-3 data centers. Needham also initiated coverage with a Buy rating and a higher price target of $34.00, noting WhiteFiber’s attractive valuation based on their discounted 2027 EBITDA estimates. Clear Street joined the trend, assigning a Buy rating and a $26.00 price target, highlighting the Cloud and High-Performance Computing segments as key growth drivers. Macquarie offered an Outperform rating with a $28.00 price target, pointing to WhiteFiber’s high-performance computing data centers and AI cloud services. Lastly, B.Riley initiated coverage with a Buy rating and a $34.00 price target, acknowledging WhiteFiber’s leading position in AI infrastructure. These developments reflect a strong consensus among analysts regarding the company’s growth potential and strategic positioning in the AI and data center markets.

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