Wall Street Sees Major Upside for Riot Platforms Driven by AI and HPC
Two big banks upgraded Riot Platforms stock. Why? They are moving into AI and high-speed computing which promises huge growth.
- Significant Stock Upgrades: Riot Platforms (RIOT) recently received positive rating changes from two major firms. JPMorgan upgraded RIOT from Neutral to Overweight, and Citi upgraded it from Neutral to Buy.
- The AI and Computing Pivot: The primary reason for the upgrades is Riot's increasing focus on Artificial Intelligence (AI) and High Performance Computing (HPC). This strategy is expected to provide substantial upside potential.
- New Business Opportunities: Analysts see Riot benefitting from moving into high performance compute colocation and cloud services. This transition leverages the high demand from platforms that are currently rushing to build more powerful computing capacity.
- Favorable Asset Position: Riot’s assets are believed to be "positioned favorably" to succeed in the growing market for computing capacity.
- Highest Relative Upside: JPMorgan specifically sees the most relative upside at Riot concerning potential high performance compute deals.
- Higher Price Targets: Both firms significantly raised their expectations for the stock's value: JPMorgan increased its price target to $19 (up from $15), and Citi increased its target to $24 (up from $13.75).