HIVE Digital Technologies Ltd. (NASDAQ:HIVE) stock is trading lower Wednesday as investors took profits following the stock’s strong multi-month rally, even as analysts remained bullish on the company’s long-term growth prospects.

The Nasdaq Composite was down 0.32%, while the S&P 500 declined 0.58%.

Analyst Stays Bullish On HIVE Digital 

H.C. Wainwright reiterated its Buy rating and maintained a $7 price forecast on HIVE in a research note released Wednesday, urging investors to look beyond the company’s fiscal fourth-quarter earnings miss and focus on its expanding artificial intelligence infrastructure business.

For the fourth fiscal quarter ended March 31, HIVE reported total revenues of $71.8 million, down 23% quarter-over-quarter (q/q) and falling short of the $80 million consensus estimate. A 23% dip in average Bitcoin (CRYPTO: BTC) prices q/q weighed down self-mining operations.

However, looking at the full fiscal year 2026, the company generated $297.8 million in total revenue—a 158% increase year-over-year. HIVE more than doubled its annual Bitcoin production to 2,885 BTC, supported by a 286% increase in its deployed hash rate to 25.1 exahashes per second.

The Underappreciated GPU Inflection Point

The primary catalyst for H.C. Wainwright’s bullish outlook centers on HIVE’s looming artificial intelligence compute contracts. Analyst Mike Colonnese noted, “GPU [Graphics Processing Unit] Cloud business is nearing a major inflection point, a dynamic that remains underappreciated by the market. We view the risk/reward as very attractive at currents levels…”

Management now guides to $200 million in GPU Cloud annual recurring revenue (ARR) exiting calendar year 2026, running at approximately 75% earnings before interest, taxes, depreciation and amortization (EBITDA) margins. This updates previous guidance of $140 million while maintaining the same target fleet of 11,000 GPUs, showcasing rapidly improving market pricing for AI compute capacity.

Funding Fleet Expansion Securely

H.C. Wainwright expresses strong confidence in HIVE’s execution path, pointing to a $115 million 0% convertible note financing closed in April, which secures down payments for near-term GPU deployments. Furthermore, HIVE’s colocation partnership with Bell provides the operational backbone required to secure lucrative enterprise AI cloud contracts.

Massive Valuation Gap Identified

According to the note, HIVE’s current $1.2 billion market capitalization barely accounts for its legacy Bitcoin mining operations, valued at $48 million per deployed EH against its 25 EH/s capacity.

Consequently, the analysts expect “any incremental announcements on contracted GPU cloud capacity to swiftly drive an upward re-rating in the stock.” H.C. Wainwright subsequently raised its fiscal year 2027 total revenue projection to $469.1 million, driven heavily by an upgraded $107 million forecast in HPC revenues.

HIVE Digital Price Action

HIVE Stock Price Activity: HIVE Digital Technologies shares were down 1.98% at $4.45 at the time of publication on Wednesday, according to Benzinga Pro data.

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