Why Is Cipher Digital Stock Gaining Thursday?

Cipher Digital Inc. (NASDAQ:CIFR) stock rose about 4% Thursday, extending Wednesday’s gain after the Electric Reliability Council of Texas (ERCOT) published a grid capacity update for the company’s data centers.The ERCOT Batch Zero framework update indicated potential grid capacity of up to 3.2 gigawatts for Cipher Digital’s Texas data center sites. The added capacity could support the company’s expansion into high-performance computing and AI infrastructure.The ERCOT update strengthens Cipher Digital’s push into AI data centers, where access to large amounts of power is critical.The stock also benefited from a broader risk-on session. The Nasdaq gained 1.67%, while the S&P 500 rose 1.11%. Technology led all sectors with a 2.23% gain.Market breadth was also positive. Nine of 11 sectors traded higher, while the advance/decline ratio stood at 4.5. See More: Top Value Stocks Cipher Digital Technical AnalysisCipher Digital is trading 6.2% above its 20-day simple moving average of $16.30. However, it remains 6.3% below its 50-day SMA of $18.46 and 15.7% below its 100-day SMA of $20.52.That setup suggests the stock is attempting a short-term rebound but has yet to reclaim its intermediate trend.The relative strength index stands at 51.15, signaling neutral momentum.The $20 level remains a key resistance area. A move above that mark would bring the stock closer to its 100-day SMA. Meanwhile, $14.50 represents an important support level if the rebound loses momentum.Analyst OutlookCipher Digital carries a Buy consensus rating with an average price forecast of $30.25.Wells Fargo initiated coverage Thursday with an Overweight rating and a $25 price forecast. Rosenblatt maintained its Buy rating and $30 price forecast on Sept. 10.Cipher Digital Price ActionCIFR Stock Price Activity: Cipher Digital shares were up 3.79% at $17.35 at the time of publication Thursday, according to Benzinga Pro data.Image via Shutterstock Read Also: EXCLUSIVE: Google Is Racing to Secure Nuclear Power for AI—The Fuel Problem Comes Next