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Riot Platforms: Billionaires' Top Data Center Pick
11 Jun
Summary
- Riot Platforms shares gained over 20% last month.
- Jefferies initiated coverage with a Buy rating and $37 target.
- AI workloads favor Riot's Texas data center locations.
Riot Platforms Inc. (NASDAQ:RIOT) is recognized as a prime data center stock investment, with its shares experiencing significant growth. Over the past month, Riot Platforms' stock price has climbed by more than 20%, contributing to a year-to-date gain of approximately 77% and a remarkable 180% increase over the last year.
On May 14, Jefferies launched coverage of Riot Platforms with a 'Buy' rating and set a price target of $37, suggesting a potential 47% upside. This positive outlook is attributed to the company's expanding digital infrastructure operations and its vertically integrated business strategy. Jefferies highlighted Riot's extensive digital infrastructure footprint in Texas, specifically mentioning its Corsicana and Rockdale campuses, noting their adjacency to key markets is beneficial for AI inference workloads.
Further bolstering its investment appeal, Riot Platforms designs and manufactures certain data center components in-house. This internal capability provides a significant supply chain advantage and strengthens its negotiating power. Jefferies' investment thesis is contingent on Riot securing anchor tenants for its Corsicana and Rockdale sites and effectively leveraging its power assets and engineering expertise for large-scale AI deployments.
