WhiteFiber stock initiated with Buy rating at Roth/MKM on AI data center growth

Published 02/09/2025, 14:06
WhiteFiber stock initiated with Buy rating at Roth/MKM on AI data center growth

Investing.com - Roth/MKM initiated coverage on WhiteFiber Inc (NYSE:WYFI) with a Buy rating and a $25.00 price target on Tuesday. The stock, currently trading at $16.91, shows a significant potential upside according to InvestingPro metrics, with analysts setting an even higher target of $34.00.

The research firm highlighted WhiteFiber’s business model of converting existing powered warehouses into Tier-3 data centers at 30-40% below greenfield construction costs, providing investors exposure to AI infrastructure.

WhiteFiber’s AICloud business currently dominates its revenue, generating approximately $88 million in annual recurring revenue from 4,500 GPUs, with 80% of these contracted through 2026, according to Roth/MKM’s analysis.

The company aims to expand its GPU count to 6,800 and increase its annual recurring revenue to over $170 million by year-end 2026, while also growing its high-performance computing colocation capacity from 3MW to 61MW of critical-IT-load in the same timeframe.

Roth/MKM noted that while clear catalysts support WhiteFiber’s growth trajectory, the high-performance computing upside remains dependent on the company’s ability to energize pipeline sites, secure financing, and formalize lease agreements.

In other recent news, WhiteFiber Inc. announced the pricing of its upsized initial public offering at $17 per share, with 9,375,000 ordinary shares offered. The company is set to debut on the Nasdaq Capital Market. Several research firms have initiated coverage on WhiteFiber, reflecting strong interest in its market potential. Needham rated the stock as a Buy with a price target of $34, citing an attractive valuation. Clear Street also initiated coverage with a Buy rating and a $26 price target, highlighting growth in the company’s Cloud and High-Performance Computing segments. Macquarie gave WhiteFiber an Outperform rating with a $28 price target, noting its operations in data centers and AI cloud services. B.Riley also rated the stock as a Buy, with a $34 price target, emphasizing its leadership in AI infrastructure. These developments indicate a positive outlook from analysts regarding WhiteFiber’s market positioning and growth prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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