Transcription
In today's video, I have a $4 stock, a data center stock that could be one of the most undervalued AI infrastructure plays in the market right now. Because they just had some big news in the past week. We all know the gains that stocks like Applied Digital, Hut 8, or Iron have made in the past year, gaining as much as 700%. These companies are now valued as much as 10 or 20 billion dollars. But today's company is just beginning to ramp up now in 2026. This reminds me of Applied Digital 2 years ago.
Before we get into it, if you appreciate these videos, then don't forget to like and subscribe to the channel. I'm aiming for 500 likes and comments, so please help the channel out. Help me hit that goal. Now, let's get straight into it and determine whether this could be one of the big AI data center stocks.
HIVE Digital Technologies builds and operates next-generation Tier 1 and Tier 3 data centers powered by clean energy across Canada, Sweden, and Paraguay. HIVE's Jewel Engine infrastructure, driven by Tier 1 computing services and GPU-based accelerated AI computing, delivers scalable, economically responsible solutions for the digital economy and computing, which is shaping future technologies.
So, why HIVE? Well, HIVE is positioned for huge growth while significantly expanding its global footprint through acquisitions of new sites, land, power agreements, and data center deployments through HIVE's HPC, which is HIVE's high-performance computing and AI cloud business. It says here on their website that in 2026, HIVE's renewable energy footprint is expected to reach approximately 540 MW, including 400 MW in Paraguay and 140 MW across Canada and Sweden.
Now, Hive stock is having a very good month after releasing some big news, but it's still far below its 52-week high of 784. But, I feel there is plenty of upside right now because this stock is still valued very low. Their valuation of just 1.5 billion dollars Canadian is only 1.1 billion USD. This makes Hive one of the lowest-valued publicly-listed data center stocks by market cap available right now.
There has been some very big news for Hive in recent weeks. First, the company announced a major step forward in its AI cloud strategy when Hive's Buzz signed a 30 million-dollar AI cloud contract accelerating global HPC tier three data center expansion, but that was just the start. The latest and biggest headline is huge. Hive announced plans for a 320 megawatt sovereign AI infrastructure project in the greater Toronto area. At full buildout, the company says this facility could support over 100,000 GPUs with a target online date in the second half of 2027. Hive CEO said the announcement takes Hive's global total power capacity to more than 850 megawatts comprising 450 megawatts of operating data centers and a pipeline of 400 megawatts expected to come online next year.
Looking at the investors presentation, we can see just how much hyperscalers are ramping up their capital expenditure. This has increased so much in the past 2 years, but it's predicted to continue until at least 2030. With Nvidia recognizing the future demand, and this picture here is of Hive chairman Frank Holmes with Nvidia's Jensen Huang. But look at this. BOS is basically Hive's AI cloud and high-performance computing division. Hive is expecting 10x revenue growth over the next 18 months. BOS is outperforming peers with multi-billion dollar stocks like Oracle, Nebius, IBM, and Iron all listed here.
Hive has some of the lowest costs in the entire industry. While the company's market cap is also very low. At the time of this presentation, it was 560 million. Right now, it's about 1.1 billion US dollars. But in an industry where almost every company is worth billions, it's rare to find real value like this.
Looking at the most recent financials, which were for December 31st, 2025, we can see that they had total assets of 623 million and total liabilities of 64.7 million. This is a very strong balance sheet. However, they only had cash of 14 million dollars, so that's quite low. However, in April, the company rectified this by closing a 115 million dollar private offering of 0% exchangeable senior notes due in 2031. The issuer estimates that the net proceeds from the offering is approximately 109 million dollars going to Hive. So, that has seriously strengthened their balance sheet.
And this is at a time when they have set record revenue, too. Hive delivered record quarterly revenue of 93 million dollars representing 219% year-over-year growth with adjusted EBITDA of 5.7 million. Their gross operating margin expanded significantly to 32.1 million, up 34.5% more than sixfold compared to 5.3 million in the prior year. But it's Hive's outlook that's most impressive. Because Hive is targeting 225 million dollars ARR for total HPC revenue by the end of calendar 2026 or early 2027 as GPU cloud capacity expands.
If we look at Fintel, there has been some major institutional movement recently, too. Citadel, who was Hive's biggest institutional investor, recently slashed its share of stock by 35% as to did Renaissance Technology, dropping their share by 46%. But the company's newest, largest institutional investor is Invesco. As of May 12th, Invesco increased its position in Hive by 16,500%, meaning that Invesco is now by far the company's largest institutional shareholder.
But they're not the only ones that are bullish on this stock. Hive Digital Technologies now has a consensus price target of 634, according to nine Wall Street analysts. Six have rated the stock as a buy, while the highest price target is $10. And this was said by Canaccord analyst Joseph Waffie, who issued a buy rating due to Hive's strategic positioning and growth potential. He underscores that Hive moved early to redeploy legacy GPUs into an AI services platform, creating a dual engine model of fast-growing AI cloud revenue alongside a still highly profitable Bitcoin mining operation. And this was all just before the big news last week, so I expect that Hive is due for some analyst revisions soon.
But guys, what do you think? At $4, is Hive a good buy? If you enjoyed this video, then help me hit my goal of 500 likes, and let me know your thoughts about the company in the comments. For some other huge opportunities, check out these videos that are appearing on screen right now. And if there's any other stocks that you think that I should be covering right now, then let me know in the comments.