Why is Cipher Digital stock rallying today? By Investing.com

Cipher Digital’s stock rose 8.1% in morning trading as a wave of renewed confidence spread among AI data center operators, lifting shares that had fallen to near their 52-week low. The immediate spark came over the weekend when TeraWulf CEO Paul Prager posted online to rebut Elon Musk’s warning about “a lot of stranded compute” in partially completed data centers. Prager argued that developers with secured power, fixed-price contracts, and investment-grade tenants are protected from that risk. The rally extended to other former Bitcoin miners pivoting to AI infrastructure, including Applied Digital. Cipher Digital is scheduled to release its Q3 2026 business update and results on November 2, with options implying roughly a 15% move. The stock remains below its 52-week high of $30.14 after earlier losses tied to $850 million in zero-coupon convertible notes announced in mid-October.