UBS Research Report Breakdown: Bitcoin Mining Companies Pivot to AI Hosting, Five Stocks Rated Buy

AI infrastructure will add approximately 260 GW of capacity from 2028 to 2030, triple the approximately 90 GW added from 2025 to 2027.

Article by: Rita

UBS Group initiates coverage of five AI data center hosting stocks transitioning from Bitcoin mining operations, issuing a Buy rating across the board with an average upside potential of 36%. The grid interconnection locations and low-cost power secured early on by these five companies have become scarce assets for AI infrastructure development. In its infrastructure report released on September 22, 2026, UBS noted that the group holds a total of 4.8GW in leased capacity, with another ~12GW in expansion pipelines, while the market has only priced in signed assets.

Time to power is a core bottleneck for data center expansion. Grid interconnection queues in the US have extended beyond five years, and vacancy rates in the traditional data center market sit below 2%. UBS analyst Ryan Gravett pointed out that AI infrastructure will add approximately 260GW in capacity between 2028 and 2030, which is three times the ~90GW expected from 2025 to 2027.

Average 36% Upside Potential

Target prices and upside potential for the five companies are as follows. Hut 8: $143 target price, representing a 45% upside from the September 18 closing price of $99. TeraWulf: $24 target price, representing a 41% upside from $17. Applied Digital: $38 target price, representing a 35% upside from $28. Core Scientific: $24 target price, representing a 33% upside from $18. Cipher Digital: $23 target price, representing a 25% upside from $18.