H.C. Wainwright Says HIVE Digital’s AI Business Is Being Overlooked

Benzinga reported Wednesday that H.C. Wainwright reiterated a Buy rating on HIVE Digital Technologies (NASDAQ: HIVE), keeping its $7 price target intact. The firm argued that investors are mispricing HIVE Digital AI growth potential by fixating on a quarterly earnings shortfall.

HIVE shares fell roughly 2% to $4.45 on Wednesday. Broader markets also softened, with the Nasdaq Composite off 0.32% and the S&P 500 down 0.58%.

Quarterly Miss Overshadows a Strong Full Year

H.C. Wainwright analyst Mike Colonnese urged investors not to anchor on the company’s fiscal fourth-quarter miss. For the full fiscal year 2026, HIVE generated $297.8 million in total revenue. That figure represents a 158% jump from the prior year.

The company also more than doubled its annual Bitcoin production to 2,885 BTC. Its deployed hash rate climbed 286% to 25.1 exahashes per second over the same period.

The GPU Inflection Point the Market Is Missing

The central thesis in H.C. Wainwright’s note concerns HIVE’s GPU Cloud division. Colonnese described the segment as approaching a major inflection point that the broader market has not yet priced in.

Management recently raised its GPU Cloud annual recurring revenue guidance to $200 million by year-end 2026. That compares to previous guidance of $140 million. Margins on that revenue stream are expected to run near 75% on an EBITDA basis. Crucially, the fleet size target of 11,000 GPUs remains unchanged, suggesting the upgrade reflects better market pricing for AI compute rather than a larger physical footprint.

Funding and Partnership Backstory

H.C. Wainwright pointed to two structural supports underpinning its confidence. First, HIVE closed a $115 million zero-percent convertible note in April. Those proceeds are earmarked for GPU deployment down payments in the near term.

Second, a colocation partnership with Bell provides the operational infrastructure HIVE needs to attract enterprise AI cloud contracts. Together, the two arrangements give the company a credible path to executing on its revised targets.

Valuation Gap Points to Potential Re-Rating

At its current roughly $1.2 billion market capitalization, H.C. Wainwright argues the stock is barely reflecting anything beyond its legacy mining operations. The firm values those operations at $48 million per deployed exahash against HIVE’s 25 EH/s capacity. That math leaves the GPU Cloud business priced at close to zero.

Colonnese suggested any fresh announcements on contracted GPU capacity could trigger a swift re-rating. H.C. Wainwright lifted its fiscal 2027 total revenue forecast to $469.1 million, with HPC revenues alone now projected at $107 million.

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