Canaccord highlights Northern Data’s strong position to take advantage of the AI boom.

Canaccord Genuity Launches Coverage on Northern Data with Buy Rating and €60 Target

Canaccord Genuity initiated coverage of Northern Data (NB2) on Thursday, highlighting the company’s strong position to capitalize on the surging demand from artificial intelligence (AI) and high-performance computing (HPC) sectors. The broker assigned a buy rating and set a price target of €60 ($62) for the stock, which was trading at €45.65, reflecting a 2.4% increase at the time of publication.

According to analysts led by Kingsley Crane, Northern Data is strategically positioned to play a key role in the “AI revolution,” with its Taiga Cloud business at the forefront of what could become a generational opportunity in the industry. The firm added that the company’s infrastructure is a crucial enabler of AI growth, likening it to the “railroad” for the AI gold rush.

Canaccord also noted that Northern Data, in which stablecoin issuer Tether holds a 52% stake, is exploring the potential sale of its Peak Mining business. Such a divestiture could provide the company with capital to invest in critical GPU technology and data-center infrastructure, significantly enhancing its growth prospects beyond fiscal year 2025.

Despite a 74% increase in its stock price over the past three months, Canaccord emphasized that Northern Data still offers significant upside potential, with strong investor demand clearly evident.