Riot Platforms (RIOT) Gains Momentum With Data Center Buildout and Strong Q3 Performance

Riot Platforms Inc. (NASDAQ:RIOT) is one of the top stocks offering high upside potential in the data center and AI sectors. On November 3, Bernstein lifted its price target on Riot Platforms Inc. (NASDAQ:RIOT) to $25 from $19 while keeping an Outperform rating. The firm highlighted that U.S. Bitcoin miners are increasingly integral to the AI value chain by providing power-rich facilities for data centers. Bernstein noted miners are shifting focus from pure Bitcoin gains to optimizing power assets and adjusted its valuation approach, replacing its DCF model with multiples more suited to Bitcoin mining and AI/HPC colocation businesses.

Earlier on October 31, analysts at Needham reiterated a buy rating on Riot Platforms Inc. (NASDAQ: RIOT) and increased the price target to $28 from $19. The price target hike is in response to the company delivering solid third-quarter results with adjusted EBITDA of $197.2 million. The company also delivered record revenue of $180 million compared to $84.8 million delivered in the same quarter last year.

Chief executive officer Jason Les also reiterated that they are making significant progress on the development of the data center business. The developments are part of the company’s ongoing efforts to transform into a large, multi-faceted data center operator.

“This progress has culminated in announcing today the initiation of the core and shell development of the first two buildings at our Corsicana data center campus, representing 112 MW of total critical IT capacity. This development has been made possible by four key achievements this quarter, namely; (i) the acquisition of an additional 67-acre parcel of land directly adjacent to our original Corsicana site,” said CEO Les.

Riot Platforms, Inc. (NASDAQ:RIOT) is a financial services company shifting its business model from exclusively Bitcoin mining to building large-scale data centers that serve the AI and high-performance computing (HPC) industries. It leverages its existing large power capacity and infrastructure in high-demand regions to capitalize on the surging demand for AI infrastructure.

While we acknowledge the potential of RIOT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.