Why is HIVE stock soaring today and what comes next?

HIVE Digital (HIVE) shares soared on Monday morning as investors reacted to the firm’s recently announced pivot from BTC mining into AI and high-performance computing (HPC) infrastructure.

Late last week, HIVE said its wholly owned subsidiary, BUZZ HPC, signed a massive three-year commercial contract valued at about US$220 million (approx. $385 million).

According to the press release, BUZZ will deploy 2,304 Nvidia Grace Blackwell GPU (configured as GB200 NVL72 rack-scale systems) at Bell’s data center facility in Merritt, British Columbia.

At the time of writing, HIVE stock is trading at a year-to-date high of about $5.3.

What’s driving HIVE stock higher today?

On Jun. 18, HIVE also secured approval from the Boden Municipal Council to outright purchase the Big Boden 32 MW data center in Sweden.

The company has operated out of this facility as a tenant since 2018, but moving to full ownership allows them to aggressively upgrade the site to Tier III standards to support heavy, next-generation AI and enterprise cloud computing workloads.

HIVE shares are rallying on a news that actually broke a few days ago mostly because today marks the first full trading session for the market to digest and price in those significant updates that also triggered positive revisions from Wall Street analysts over the weekend.

Cantor Fitzgerald analysts, for example, reiterated their “Overweight” rating on HIVE Digital and raised their price target aggressively to $7, indicating significant further upside from current levels.

Cantor Fitzgerald’s bull case for HIVE shares

In its latest research note, Cantor Fitzgerald analysts led by Brett Knoblauch said HIVE’s narrative is completely transforming.

Instead of being viewed as just a high-beta crypto miner subject to volatile Bitcoin prices, the firm is now building hard infrastructure that makes it an "AI infrastructure landlord."

Knoblauch explicitly pointed out that the global tech market faces a massive compute and energy scarcity through 2026 and 2027.

And because HIVE has successfully secured tangible access to mega-scale power (anchored by their massive 320 MW AI gigafactory plans near Toronto and the recently solidified 32 MW site ownership in Sweden), HIVE stock is uniquely positioned to benefit.

“Compute scarcity makes it possible a large player would want access to HIVE Digital's compute capacity,” he added.

What’s the consensus rating on Hive Digital

Following the AI pivot driven rally, HIVE shares’ relative strength index (RSI) sits in the early 70s – indicating “overbought” conditions that often precede a near-term pullback.

Still, Wall Street analysts remain bullish as ever on the stock for the next 12 months.

According to The Wall Street Journal, the consensus rating on Canada-based HIVE Digital Technologies Ltd sits at “Buy” currently, with the mean price target of $7.07 signaling potential upside of some 30% from current levels.