Northern Data: a protagonist in the revolution of artificial intelligence (AI)

Northern Data is strategically positioned to capitalize on the growing demand for high-performance computing and artificial intelligence (AI). Additionally, Canaccord Genuity is initiating coverage of the stock with a “buy” rating with promising prospects.

Let’s see all the details in this article. 

An infrastructure for the AI of the future

The artificial intelligence (AI) sector is experiencing a period of explosive growth, and companies like Northern Data are ready to seize this generational opportunity. 

In a recently published report, Canaccord Genuity, one of the leading global brokers, initiated coverage of Northern Data shares with a “buy” rating and a price target of 60 euros.

This signals a clear recognition of the potenzialità dell’azienda in the evolving landscape of high-performance computing (HPC).

According to Canaccord, Northern Data is building the essential infrastructure for the expansion of artificial intelligence, comparing its activity to building a “railroad for the AI gold rush”.

The company has positioned itself at the center of a technological revolution, thanks to its Taiga Cloud division, which provides advanced computing solutions to meet the growing demands of data processing.

With the stock currently trading at 45.65 euros, up 2.4% compared to the previous day, analysts believe there is still significant room for growth, despite the 74% rally in the last three months.

One of the key strategic moves highlighted in the report concerns the possible sale of the Peak Mining business, a decision that could unlock significant financial resources.

Currently, the company is evaluating this option, which, if implemented, would allow it to invest in advanced GPUs and new data center facilities.

According to the analysts at Canaccord, this operation would improve the company’s growth capacity, allowing it to position itself even better in the market beyond the fiscal year 2025.

Furthermore, the sale of Peak Mining could attract additional investors, given the growing interest in companies that offer infrastructure for artificial intelligence.

The role of Tether in the success of Northern Data

An interesting aspect is the participation of Tether, the issuer of stablecoin, which holds 52% of Northern Data’s shares. This connection underscores the growing convergence between the cryptocurrency sector and that of artificial intelligence.

The collaboration with Tether not only strengthens Northern Data’s financial position, but also offers it privileged access to strategic resources for future growth.

The analysts led by Kingsley Crane have described the current development phase of Northern Data as a “generational opportunity”. 

The growing demand for infrastructure for artificial intelligence and advanced computing makes Northern Data an indispensable player for technology companies, financial institutions, and other organizations that require large-scale computational power.

The solidity of its strategy, combined with the evident appetite of investors, makes Northern Data one of the most promising companies in a rapidly changing market.

Future prospects

With artificial intelligence revolutionizing sectors such as healthcare, finance, automotive, and entertainment, the demand for HPC solutions is set to grow exponentially. 

Northern Data is in a unique position to provide the necessary infrastructure, further consolidating its role as a leader in the sector.

Investments in advanced technology and the expansion of its facilities will ensure the company the ability to face future challenges, while maintaining a strong competitive advantage.