Small-cap stock Riot Platforms (NASDAQ: $RIOT) is firing on all cylinders.
The Bitcoin (CRYPTO: $BTC) miner turned artificial intelligence (A.I.) data centre operator has seen its share price rise 84% this year.
Currently, RIOT stock is trading at a 52-week high of $26.30 U.S. In the last 12 months, the shares have nearly tripled (up 185%).
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However, investors needn’t worry that they’ve missed the boat with Riot Platforms’ stock. Analysts say the shares have room to run as the company surfs the A.I. infrastructure wave.
Wall Street brokerage Needham recently raised its price target on RIOT stock to $28.50 U.S. from $24 U.S. and reiterated s Buy rating on the shares.
The upsurge in Riot Platforms’ stock has come after the company announced its intention to add A.I. data centres to its operations in addition to its core Bitcoin mining service.
Like other cryptocurrency miners, Riot Platforms sees running A.I. data centres and high-performance computing (HPC) as more stable than producing Bitcoin, whose price is volatile.
In January of this year, Riot Platforms launched it’s A.I. hosting business by securing chip giant Advanced Micro Devices (NASDAQ: $AMD) as the first tenant at its Rockdale, Texas campus.
AMD recently exercised an option to double its Rockdale footprint by 25 MW of energy, providing a huge boost of confidence to Riot Platforms and its stock.
Riot, which controls a total of 1.7 gigawatts (GW) of power capacity at its Texas data centre facility says it is in the process of signing other technology companies as tenants.
As a company, Riot Platforms is not yet profitable and it offers no dividend to shareholders. But with a market capitalization of $9.90 billion U.S., it remains a small-cap stock.
RIOT stock could be a good way to capitalize on an eventual recovery in Bitcoin’s price and the A.I. infrastructure boom.
