Northern Data (NB2) is well placed to take advantage of the AI ​​boom: Canaccord

Infrastructure providers like Northern Data ( NB2 ) are well-positioned to benefit from growing demand from artificial intelligence (AI) and high-performance computing (HPC) firms, broker Canaccord Genuity said in a report on Thursday that initiated coverage of the stock.

Canaccord assumed coverage with a buy rating and a target price of €60 ($62) on the stock. Shares rose 2.4% to 45.65 euros at press time.

According to analysts led by Kingsley Crain, companies like Northern Data are “building a railroad for an AI gold rush.” The company’s Taiga Cloud business has come online “at the forefront of generational capabilities.”

According to the broker, Northern Data, it is 52% The stablecoin issuer belongs to Tetherhas previously announced that it is exploring ways to sell its Peak Mining business.

The potential spin-off would give Northern Data cash to invest in GPUs and data center facilities and “significantly improve the company’s growth trajectory beyond FY25,” the report said.

Canaccord added that despite a 74% rally over the past three months, the shares still offer potential upside and that “investor appetite is evident.”

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