Benzinga - In a recent market analysis, Benchmark has spotlighted Bitdeer Technologies (NASDAQ:BTDR) as a company with the potential to see its stock price soar, based on its strategic partnership with Nvidia (NASDAQ:NVDA).
What Happened: Benchmark has identified a significant investment opportunity in Bitdeer Technologies, with the potential for the stock to more than double, as reported by CNBC on Thursday.
Analyst Mark Palmer of Benchmark initiated coverage on the Singapore-based crypto mining company, Bitdeer Technologies, with a bullish buy rating. Bitdeer, which debuted on the market last year via a SPAC, is poised for substantial growth, according to Palmer. The company’s expansion into artificial intelligence (AI) is notably backed by a strategic partnership with Nvidia.
In November, Bitdeer announced its role as a preferred cloud service provider within Nvidia’s partner network. Palmer’s report highlighted Bitdeer’s upcoming Bitdeer AI Cloud offering, which aims to provide businesses with cloud-based, high-powered computing resources for AI and machine learning tasks. This move is set to position Bitdeer favorably in the AI/high-performance computing (HPC) market, initially targeting small AI firms.
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Palmer also noted Bitdeer’s scalable business model and diversified revenue streams as differentiators from its competitors. Despite Bitdeer’s stock declining 36% in 2024, Benchmark’s $13 price target suggests a near doubling from its last closing price of $6.74. Palmer expressed confidence in the stock’s potential for appreciation as the company progresses with its growth strategy.
Furthermore, Benchmark isn’t alone in its optimistic outlook for Bitdeer. BTIG analyst Gregory Lewis also initiated coverage with a buy rating and set a $15 price target, indicating a 122% upside.
Why It Matters: The bullish sentiment surrounding Bitdeer Technologies is underscored by the broader industry’s focus on AI, with Nvidia at the forefront. Nvidia is gearing up for its annual artificial intelligence conference, the Nvidia GTC, which has become a pivotal event for GPU technology and global AI development. Scheduled from March 18-21, the event is anticipated to further solidify Nvidia’s position in the AI space.
Moreover, prominent investors like Ross Gerber have emphasized the importance of Nvidia in the burgeoning AI market, advising investors to hold onto their Nvidia shares. Gerber’s comments reflect a strong belief in the long-term value of Nvidia, which in turn could bode well for its partners like Bitdeer.
These developments come as Nvidia’s stock has experienced significant volatility but also impressive growth, with a rally of over 80% this year.
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