Galaxy Digital has room to run as the artificial intelligence and cryptocurrency company capitalizes on industry tailwinds, according to Morgan Stanley. The investment firm assigned Galaxy Digital’s stock an overweight rating. It also set a $42 price target per share, implying about 34% upside from Wednesday’s close. “We view Galaxy Digital as a compelling combination of 1) a nascent AI data center developer with a clear path to monetizing one of the largest single-campus [high-performance computing] data centers under development and 2) a blockchain-enabled investment bank,” James Faucette said Thursday in a note to clients. Galaxy is aiming to fully build out its Helios data center over the next few years, which could be one of the largest in the world at $30 billion in terminal equity value, the note said. The CoreWeave -linked AI cloud computing portion of the center is projected to produce roughly $435 million in earnings before interest, taxes, depreciation and amortization in 2027, according to Morgan Stanley. On the crypto side, Galaxy is also poised to benefit from increased institutional adoption of digital assets, analysts said in their note. “Galaxy Digital Assets is levered to institutional blockchain adoption, a trend we view as nascent, enabled by the current political backdrop,” Faucette wrote, adding that the firm is pioneering corporate and investment banking services, staking and custody products as well as asset management offerings. GLXY YTD mountain Galaxy Digital shares are up since the beginning of the year. Galaxy Digital shares are trading down about 3% on Thursday. The stock is up 74% year to date.
