Hut 8 Corp (NASDAQ: HUT) shares are trading in positive territory Monday, climbing 2.31% to $112.53 as investors await second-quarter earnings scheduled for August 4. The stock is currently priced at $112.53, reflecting a significant premium to its long-term technical averages and signaling strong market interest despite an expected quarterly loss. This price action underscores a shift in investor sentiment toward the company’s long-term AI infrastructure growth potential rather than near-term profitability.

Analysts estimate Hut 8 will report a loss of 33 cents per share on revenue of $79.75 million for the quarter. This follows a disappointing prior quarter where the company posted a loss of $1.98 per share, missing the consensus estimate of a loss of 34 cents per share. Revenue for that period was $71.02 million, falling short of the consensus estimate of $81.28 million. The upcoming results will be critical in determining whether the company can stabilize its operational performance amid the transition from pure-play bitcoin mining to diversified digital infrastructure.

Technical Outlook

The stock exhibits a strong long-term uptrend, trading 64.7% above the 200-day simple moving average (SMA) of $68.62 and 28.3% above the 100-day SMA of $88.06. However, short-term momentum appears mixed. Shares are only 1.4% above the 50-day SMA ($111.45) while remaining 7.3% above the 20-day SMA ($105.30). The Relative Strength Index (RSI) sits at 51.72, indicating neutral momentum after cooling from overbought conditions seen in May when the RSI exceeded 70.

Key resistance is identified at $130.00, a round-number level below the 52-week high of $140.80 where rebounds may stall. Key support lies at $104.50, aligning with the 20-day SMA/EMA zone and serving as a practical trend support level. The current moving-average structure shows the 20-day SMA below the 50-day SMA, a bearish short-term crossover, even as the 50-day SMA remains above the 200-day SMA, maintaining a bullish longer-term backdrop.

Analyst Consensus & Recent Actions

The stock carries a Buy rating with an average price forecast of $143.33. Recent analyst actions reflect growing confidence in the company’s strategic pivot:

• Morgan Stanley: Initiated with Overweight rating; target price $263.00 (July 23)
• Benchmark: Maintains Buy rating; raises target price to $195.00 (July 22)
• Rosenblatt: Maintains Buy rating; target price $124.00 (July 21)

What to Watch

Investors are closely tracking construction progress at River Bend and Beacon Point, Hut 8’s two major AI data center campuses. Neither facility is expected to contribute meaningfully to revenue until 2027. Updates on the company’s 8,375-megawatt development pipeline will also be scrutinized, as investors assess how much additional capacity can convert into long-term leases. Additionally, bitcoin mining operations and digital asset mark-to-market swings remain key variables, as unrealized crypto fluctuations have historically driven outsized net losses even as the business shifts toward AI infrastructure.

Morgan Stanley analyst Stephen Byrd has initiated coverage on Hut 8 with an Overweight rating and announced a price target of $263. This rating suggests a positive outlook for the company's stock performance relative to its peers.

The Overweight rating indicates that the analyst expects the stock to outperform the broader market or industry average over a specific period. The price target of $263 provides a specific valuation benchmark for investors.

Analyst Details

The coverage initiation was led by Stephen Byrd, an analyst at Morgan Stanley. The rating and price target are based on the firm's assessment of Hut 8's current financial position and future prospects.