Morgan Stanley Raises Price Target for Cipher Digital Amid AI Infrastructure Pivot
On September 18, Morgan Stanley raised its price target for Cipher Digital (NASDAQ:CIFR) to $54 from $43.50 while maintaining an Overweight rating. This move follows the company's transformation into a provider of AI infrastructure and securing a major lease with Amazon Web Services under a 15-year agreement worth approximately $5.5 billion at its Black Pearl site. Cipher began delivering capacity to AWS in August 2026, ahead of schedule, marking progress toward monetizing data-center assets rather than relying on Bitcoin mining cycles. The company also has another transaction with Google through the Barber Lake project, further validating its infrastructure pivot. However, risks remain around construction delays and capital costs that could impact returns before revenue begins. Amazon benefits by securing long-term power capacity without full ownership risk as AI demand drives higher cloud spending. Cipher's stock is held by 72 hedge funds in Q2 2026, up from the previous quarter, with notable positions including D.E. Shaw and Arrowstreet Capital.
Topics: AI infrastructure Bitcoin mining transition M&A/leasing deals price target upgrade