Grayscale sees strong AI compute demand, calls stock pullback a buying opportunity

AI compute infrastructure stocks have come under pressure as investors reassess the impact of rising borrowing costs on companies with major financing requirements. The Indxx High Performance Computing Index, which includes companies such as CoreWeave and Nebius, has lost roughly 27% since the end of September.

According to Grayscale Head of Research Zach Pandl, these concerns reflect the reality that most businesses in the sector remain early-stage and capital-intensive, with capital expenditures substantially exceeding current revenue at some companies.

Despite the selloff, Pandl emphasized that demand for compute continues to increase rather than weaken. He expects this trend to persist as lower token prices encourage greater AI usage and the growing adoption of AI agents increases demand for inference computing.

If demand growth and compute prices remain high, infrastructure providers could benefit even as financing costs weigh on their stock valuations, Pandl said.

Pandl also identified slower depreciation of graphics processing units (GPUs), which are often carried as assets on company balance sheets, as a potential supporting factor.

Rising Bitcoin prices could provide another tailwind because of the overlap between the AI compute infrastructure and Bitcoin mining industries. He said the sector’s latest decline could present an opportunity to add exposure, arguing that rising demand for computing power remains the most important fundamental driver.