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Marc Guberti, The Motley Fool
Sun, May 24, 2026 astatine 11:17 AM CDT 4 min read
Artificial quality (AI) has produced immoderate of the astir compelling stocks implicit the past decade. Nvidia is the biggest banal successful the manufacture and has gained 1,400% implicit the past 5 years. Sandisk has surged by much than 3,000% implicit the past year.
If you are looking for under-the-radar picks, you mightiness privation to commencement with Cipher Digital (NASDAQ: CIFR), which rebranded successful February 2026 from Cipher Mining to Cipher Digital and is up 40% truthful acold this twelvemonth arsenic of Thursday morning. The institution that started with Bitcoin mining present develops AI information centers and signs semipermanent deals with tech giants, and serves arsenic a cardinal portion of AI infrastructure.
Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »
Predictable gross and scalability
Cipher Digital makes wealth by gathering AI information centers and securing semipermanent contracts. The much gigawatts of powerfulness it accumulates, the much deals it tin sign.
In March, the institution signed its 3rd AI information halfway field lease with what it called an "investment-grade hyperscale tenant," showing that Cipher Digital tin rapidly crook AI information halfway capableness into caller customers. It is simply a 15-year lease for an undisclosed sum, but a erstwhile woody with Amazon hints astatine Cipher Digital's semipermanent potential.
Last year, Cipher Digital secured a 15-year, $5.5 cardinal woody to proviso Amazon with 300 megawatts of capacity. That comes to $367 cardinal per twelvemonth successful revenue. The institution has 4.2 gigawatts of capableness successful its portfolio, which means it could enactment 14 deals similar the Amazon declaration erstwhile those AI information centers are operational. It presently has 907 megawatts of operating and contracted capacity.
Cipher Digital has little costs than apical competitors
Cipher Digital isn't the lone institution that is gathering AI information centers. Iren and Nebius are 2 of the largest companies successful this industry. However, Cipher Digital has an vantage implicit them arsenic it doesn't person to walk arsenic overmuch wealth connected each of its information centers arsenic Iren and Nebius.
The quality comes from Cipher Digital's landlord model. It provides the AI information centers, land, and power. Customers indispensable bring their ain AI chips to the locations. Iren and Nebius walk other wealth connected AI chips for their facilities. While Cipher Digital has little declaration values than Iren and Nebius for the aforesaid energy, it tin deploy AI information centers faster.
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