Riot Platforms, Inc. (NASDAQ: RIOT) experienced a notable increase in stock price on Wednesday amid a rising wave of investor interest. This movement followed a report by Piper Sandler, which recently identified Riot Platforms as one of its preferred equities heading into the company's forthcoming earnings announcement.
The analyst firm awarded Riot a price target of $26 per share, reflecting a potential gain of 55% relative to the stock's close on Tuesday. Piper Sandler characterizes Riot as a 'sleeping giant' within the Bitcoin mining sector, underscoring its distinctive positioning when compared to competitors.
Central to this positive outlook are Riot's data center assets, which are compatible with artificial intelligence and high-performance computing (HPC) workloads. The company commands a combined total of 1.7 gigawatts of gross power capacity across two Texas locations, assets described by Piper Sandler as among the most desirable AI and HPC-ready sites currently available on the market.
The analyst note conveyed anticipation that these data center properties would not remain for long without active utilization. It further forecasted that Riot could soon announce a deal related to AI or HPC applications. This event is expected to be a catalyst for substantial stock outperformance when contrasted with other Bitcoin mining firms. Investors are particularly attentive toward incremental insights that may emerge during Riot's fourth-quarter fiscal year 2025 earnings call, scheduled near the end of February.
Current analyst estimates project Riot to report a loss of 14 cents per share alongside revenues reaching $164.94 million for the quarter, according to Benzinga Pro data.
On Wednesday, Riot's shares traded approximately 2.7% higher at $17.20. Over the past year, the stock has appreciated by around 27.5%, with a remarkable rally exceeding 30% in just the last month.
This price momentum correlates with the bullish sentiment driven by Piper Sandler's assessment, which emphasizes the firm's infrastructure as a pivotal asset in an evolving market that increasingly values facilities optimized for AI and HPC workloads.
Bitcoin's price action, relevant to Riot's core mining business, added a positive backdrop, with the cryptocurrency reported at $96,791.98, up 1.48% as per Benzinga Pro data at the time of reporting.
Given Riot's unique blend of cryptocurrency operations and readiness to support advanced computing applications, market participants are watching closely for possible partnership announcements or other developments that could unlock further value.