Riot Platforms Expands Data Center Operations with AMD Partnership
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 24 2024
0mins
Should l Buy RIOT?
Source: Coinmarketcap
Riot Platforms Inc. shares surged by 5.04% as the stock crossed above its 5-day SMA, reflecting strong investor interest.
The company announced a significant expansion into the data center market by acquiring 200 acres of land for $96 million, funded by the sale of 1,080 Bitcoins. Additionally, Riot signed a 10-year lease agreement with AMD valued at $311 million, with potential growth to $1 billion, indicating a strategic shift towards AI data processing. This move has garnered positive market sentiment, as investors recognize the potential for growth in the AI sector despite concerns over Riot's high P/E ratio of 54.
The implications of this partnership with AMD could position Riot as a key player in the rapidly growing AI data center market, enhancing its operational capabilities and addressing the increasing demand for data processing.
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Analyst Views on RIOT
Wall Street analysts forecast RIOT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RIOT is 27.19 USD with a low forecast of 20.00 USD and a high forecast of 42.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
16 Buy
0 Hold
0 Sell
Strong Buy
Current: 12.060
Low
20.00
Averages
27.19
High
42.00
Current: 12.060
Low
20.00
Averages
27.19
High
42.00
About RIOT
Riot Platforms, Inc. is a Bitcoin mining and digital infrastructure company. The Company has Bitcoin mining operations in central Texas and Kentucky, and electrical engineering and fabrication operations in Denver, Colorado, and Houston, Texas. It operates a Bitcoin-driven infrastructure platform. Its segments include Bitcoin Mining and Engineering. The Bitcoin Mining segment is engaged in Bitcoin mining activities. The Engineering segment designs and manufacturers power distribution equipment and custom engineered electrical products. This segment also provides electricity distribution product design, manufacturing, and installation services primarily focused on large-scale commercial and governmental customers and serves clients across a range of markets including data center, power generation, utility, water, industrial, and alternative energy. It is also focused on developing a portion of its power capacity for artificial intelligence (AI)/ high-performance computing (HPC) uses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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