Riot Platforms Receives Upgrades Amid AI Shift and Mining Challenges
- JPMorgan upgraded Riot Platforms (RIOT) to overweight, raising the price target from $15 to $19.
- Citigroup also upgraded RIOT to buy, increasing its price target from $13.75 to $24.
- Both banks highlighted Riot’s pivot into artificial intelligence and cloud services as key growth factors.
- Riot’s stock was down by only 1.2% to $16.55, while the sector faced larger declines.
- JPMorgan maintained a buy rating on Cipher Mining (CIFR), doubling its price target to $12 from $6.
- MARA Holdings (MARA) was kept at overweight with a reduced price objective of $20, down from $22.
The upgrades reflect changing economics in the Mining industry, particularly as profitability declines and companies explore new revenue streams like high-performance computing (HPC). JPMorgan estimates a significant probability that Riot and others will secure HPC colocation agreements, valued between $3.7 million and $8.6 million per megawatt.
Overall, Riot’s recent upgrades position it favorably among its peers as it adapts to market changes, with analysts projecting potential growth through diversification into AI services.(Source)
