Rosenblatt recommends buying shares of Galaxy Digital and Cipher Digital following a selloff of high-performance computing (HPC) stocks [1].
This shift in sentiment suggests that the market may have overreacted to recent corporate movements, potentially leaving high-value assets undervalued for long-term investors.
According to Chris Brendler of Rosenblatt, the recent decline in HPC names was driven by actions from Meta [1]. Brendler said the selloff was overdone, creating a strategic window for those looking to enter these specific positions [1].
Galaxy Digital has experienced a 22% decline over the last two weeks [1]. This sharp drop is viewed by analysts not as a fundamental failure of the company, but as a byproduct of the broader sector volatility [1].
Cipher Digital is also highlighted as a primary target for investors. Brendler said there is a widening valuation gap for Cipher Digital, suggesting the stock is trading significantly below its intrinsic value [1].
The recommendation comes as the HPC sector faces scrutiny over the sustainability of current growth trajectories. However, the analysts at Rosenblatt maintain that the specific pressures applied by Meta's actions have pushed prices lower than the fundamentals justify [1].
“Rosenblatt says the Meta-driven selloff in HPC names was overdone.”
The recommendation to buy Galaxy Digital and Cipher Digital indicates a belief that the 'HPC selloff' is a technical correction rather than a structural collapse. By linking the decline to Meta's specific actions, analysts are arguing that the market punished these stocks for external factors, creating a disconnect between market price and company value.
