Northern Data's AI Boom Opportunity: Canaccord Sees 32% Upside

The ai boom is reshaping infrastructure investment dynamics, and Northern Data—a European data center operator—stands to be among the primary beneficiaries. Investment bank Canaccord Genuity has launched formal coverage of the company with a buy rating and a 60 euro price target, implying roughly 32% upside from current trading levels around 45.65 euros. This valuation reflects the firm’s conviction that infrastructure providers like Northern Data are uniquely positioned to capitalize on surging demand from artificial intelligence and high-performance computing operators.

“We’re essentially in the early stages of an AI gold rush, and companies like Northern Data are laying the foundational infrastructure,” noted analysts led by Kingsley Crane in the report. The company’s stock has already appreciated 74% over the past three months, yet the broker believes additional gains are achievable given expanding investor appetite and structural tailwinds from the ai boom.

Taiga Cloud Emerges as the Growth Engine

Northern Data’s Taiga Cloud business has emerged as the crown jewel in the company’s portfolio, coming online at a pivotal moment in the AI computing cycle. This high-performance computing platform represents the company’s direct exposure to generational-scale demand trends. By maintaining ownership of Taiga Cloud while exploring strategic alternatives for its Peak Mining segment, Northern Data can channel capital toward GPU procurement and data-center expansion—assets that are indispensable in the current environment.

The potential divestiture of Peak Mining carries strategic importance beyond simple cash liberation. A successful sale would provide Northern Data with dry powder to accelerate infrastructure buildout and extend its growth runway significantly beyond the current fiscal year. Canaccord highlighted this path as a meaningful value-creation catalyst.

Capital Structure and Ownership Dynamics

A noteworthy consideration for investors is the company’s capital structure: Tether, the major stablecoin issuer, owns approximately 52% of Northern Data. This ownership stake has occasionally drawn scrutiny, but it also signals long-term commitment from a major player in the digital asset ecosystem. The intersection of infrastructure capabilities and deep-pocketed backing positions Northern Data as a substantial competitor in data-center services catering to AI and crypto computing demands.

Market Technicals Show Strength But Caution Warranted

Bitcoin has recently rebounded to $67,950, with correlated assets ETH ($2,050), SOL ($87.83), DOGE ($0.10), and ADA ($0.30) all participating in the short-squeeze rally. While altcoins and crypto equities like Circle and Coinbase have surged alongside the recovery, analysts counsel restraint in extrapolating this momentum.

LMAX Group’s Joel Kruger emphasized that the recent rally appears to be driven primarily by unwinding of bearish positioning and thin liquidity conditions rather than fundamental catalysts. For a sustained uptrend to materialize, bitcoin must convincingly break and hold above key resistance zones around $72,000 and $78,000. Until those technical hurdles are cleared, the rebound carries characteristics of a temporary bounce rather than a structural shift.

FalconX trading strategist Joshua Lim noted that some funds are actively chasing the rally, rotating capital into volatile altcoins and options strategies. While this activity can amplify near-term gains, it also underscores the fragility of rallies built on technical positioning rather than fundamental improvement.

Conclusion: ai boom as the Structural Tailwind

The ai boom provides Northern Data with a multi-year tailwind, but investor patience with technical volatility will be tested repeatedly. Canaccord’s constructive stance reflects confidence in the company’s infrastructure assets and strategic positioning—though stock price discovery will likely remain influenced by broader market technicals in the near term. The 32% price target implies the market has yet to fully price in the earnings power embedded in AI infrastructure spending.