Bernstein Initiates 'Outperform' Rating on Cipher Digital (NASDAQ:CIFR) Amid AI Data Center Pivot

Font: Financial Modeling Prep  • Jun 03, 2026

• Investment firm Bernstein initiated an "Outperform" rating on Cipher Digital (NASDAQ:CIFR) due to its strategic pivot from Bitcoin mining to developing High-Performance Computing (HPC) data centers for Artificial Intelligence (AI) workloads.
• Cipher Digital has secured $11.4 billion in long-term lease revenues and 907 MW of contracted capacity, positioning it strongly in the rapidly expanding AI infrastructure market, projected to grow at a compound annual growth rate of 23.8%.
• The company's stock has seen a 40% rise year-to-date, reaching a new 52-week high of $28.62, reflecting its successful transition and strong contract pipeline compared to competitors facing challenges in traditional Bitcoin mining.

On June 3, 2026, investment firm Bernstein initiated coverage on Cipher Digital (NASDAQ:CIFR), assigning it an "Outperform" rating. The company, which recently rebranded from Cipher Mining, has shifted its focus from Bitcoin mining. It now concentrates on developing High-Performance Computing (HPC) data centers specifically for Artificial Intelligence (AI) workloads.

This positive outlook from Bernstein follows Cipher Digital's strategic pivot. The company now secures long-term contracts with major tech companies, which it calls "investment-grade hyperscale tenants." CEO Tyler Page confirms this strategy focuses on powering data centers and building out the company's project pipeline to meet growing demand for AI infrastructure.

This strategy is supported by strong financial commitments. Cipher Digital has already secured $11.4 billion in long-term lease revenues tied to 907 MW of contracted capacity. This positions the company to benefit from the AI infrastructure market, which is projected to expand at a compound annual growth rate of 23.8%.

The company's stock performance reflects this momentum. When the rating was published, Cipher Digital's price was $26.24, and it reached a new 52-week high of $28.62 during the day. The stock has risen 40% so far this year. As highlighted by The Motley Fool, some view Cipher Digital as an underrated AI stock with long-term potential.

In a competitive landscape, Cipher Digital appears to have an advantage. A comparative analysis notes that competitor IREN Limited (NASDAQ:IREN) faces near-term challenges from reduced Bitcoin mining revenues. This contrasts with Cipher Digital's successful transition and strong contract pipeline in the expanding AI data center market.