Cipher Digital Inc (NASDAQ:CIFR) is one of the best data center stocks to invest in according to billionaires. Cipher Digital shares have soared more than 57% year-to-date and have exploded more than 620% over the past year. Wall Street continues to see more upside in this AI data center stock.
On May 14, Jefferies initiated coverage of Cipher Digital Inc (NASDAQ:CIFR) stock with a Buy rating and a $32 price target. For this call, the firm pointed to Cipher Digital’s growing foothold in the AI data center market.
According to Jefferies, Cipher entered the sector later than many competitors, but the company has already secured lease agreements with blue-chip customers. Cipher signed its third AI data center campus lease with an investment-grade hyperscale customer in Q1 2026.
Jefferies pointed out that Cipher has quickly established credibility in the industry with high-quality tenants. The firm stressed that Cipher has focused on customers with solid credit profiles and strong balance sheets. According to the firm, this strategy reduces the risk of contract defaults and project financing. Jefferies believes Cipher’s growing track record will help it win additional business.
Cipher’s management has said that existing projects are progressing on schedule. The management also said the company expects to have enough capital to fund the third data center campus.
Cipher Digital Inc (NASDAQ:CIFR), formerly known as Cipher Mining, develops and operates industrial-scale data centers. Its facilities power AI and high-performance computing workloads. Cipher Digital serves hyperscale customers like Google and Amazon.
While we acknowledge the potential of CIFR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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