Transcription
In today's video, I have a $3 data center stock that could be one of the most undervalued AI infrastructure plays on the market right now. After Friday's brutal AI correction, this stock looks very appealing.
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 across Canada, Sweden, and Paraguay. HIVE's dual 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.
HIVE stock was on a great run before the massive market correction. The stock had been up about 180% since the start of April. But now it's back to less than half of its 52-week high of 780. So, I feel there is plenty of upside right now because this stock is valued very low. The valuation of just $1 billion US makes Hive one of the lowest-valued publicly listed data center stocks by market cap.
A few days ago, Hive released their latest earnings report for Q4 and full year ended March 31st, 2026, where they announced year-over-year growth of 158%. So, let's take a look at this because there is more to this than just the headline numbers. So, first of all, total revenue came in at $297.8 million, with $278 million coming from the digital currency mining and only 19.5 million from their HPC segment. During the year, they doubled their Bitcoin production from 1,400 in fiscal 2025 up to 2,800 for full year 2026. While Hive's Buzz HPC business generated a record 19.5 million, up 94% from $10 million in full year 2025, Hive recorded margins of 36% compared to 22% in the previous year. And a GAAP net loss of $148 million. Now, a lot of this loss is non-cash adjustments, so this is a bit misleading, and I will look at this in just a moment. Adjusted EBITDA was $72.9 million, or 24% of total revenue.
Hive's founder and chairman, Frank Holmes, stated that 2026 marked a defining year for Hive, saying that in fiscal 2026, we significantly expanded both sides of the platform, increasing our Bitcoin mining hash rate, and growing contracted HPC to $35 million. This growth translated into strong financial results, with revenue increasing 158% to 297 million, gross operating margin increasing 329% to 107 million, and adjusted EBITDA reaching 72.9 million. But, this is the part that I'm most optimistic about. Our Paraguay expansion transformed Hive into one of the world's largest operators of green energy-powered Bitcoin mining infrastructure, and established Hive as an emerging leader in Canadian AI infrastructure. There is a clear pathway to 660 million dollars of annual revenue by year-end 2028, anchored by our planned 320 megawatt AI gigafactory in the greater Toronto area, which is the largest planned Canadian AI infrastructure project under private ownership. We believe we are well-positioned to capitalize on the growing demand for AI infrastructure.
So, this is where the numbers come into it and is so important. Hive is currently valued at just 1.39 billion Canadian dollars, which is a market cap of less than 1 billion dollars US. They are closing in on over 660 million dollars of annual revenue. Hive is being valued at a fraction of the valuation of many of its peers, while actually being miles ahead of them. Their CEO stated that in 2025, we built 300 megawatts of hydro-powered tier one data center capacity in Paraguay, and this year, we have announced 320 MW sites in Toronto, along with 70 MW at Grand Falls, and seven at the Toronto airport site, meaning approximately 400 MW of HPC tier three data center capacity in Canada coming online over the next 18 months.
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, but look at this. Boz is basically Hive's AI cloud and high-performance computing division. Hive is expecting 10x revenue growth over the next 18 months. Boz is outperforming peers with multi-billion dollar stocks like Oracle, Nebius, IBM, and Iron Ore 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. But in an industry where almost every company is worth billions, it's rare to find real value like this.
When we look at Hive Digital Technologies consolidated balance sheet, we can see that they have total assets of 339 million and total liabilities of just 109 million. This gives Hive a very strong asset liability ratio of about 6 to 1 and total equity of over 529 million dollars. Let's not forget that this is a company whose market cap is about 1 billion dollars US, and all these figures are in US dollars, not Canadian. So, total equity of over 500 million dollars is incredible. Unsurprisingly, plant, property, and equipment is the largest asset class worth 480 million, while the company has very little debt.
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 too 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. Following their earnings release, Hive got a wave of new analyst price targets. Hive Digital now has a consensus price target of 690, according to nine Wall Street analysts. Six have rated the stock as a buy, while the highest price target is $10. This was set 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 deploy 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. Whereas analysts at H.C. Wainwright give the stock a $7 price target and stated that the market is still missing Hive's biggest growth engine.
But guys, what do you think? Is Hive at 370 a good buy? If you enjoyed this video, then help me hit my goal of 500 likes, and let me know your thoughts about this company in the comments. For some other huge opportunities, check out these videos appearing on screen right now.