Riot Platforms (RIOT) received consecutive analyst upgrades from JPMorgan and Citigroup on Friday. The Wall Street firms cited the Bitcoin miner's strategic shift into artificial intelligence (AI) and high-performance computing (HPC) as key growth drivers amidst changing industry dynamics.
JPMorgan upgraded RIOT to Overweight from Neutral, raising its price target to $19 from $15, and named it the most attractive pick among mining stocks. Citigroup upgraded the stock to Buy from Neutral, significantly increasing its price target to $24 from $13.75. Both banks highlighted Riot's pivot to AI and cloud services as a potential revenue source as Bitcoin mining profitability faces pressure.
In contrast, JPMorgan downgraded Iris Energy (IREN) to Underweight. While maintaining a Buy rating on Cipher Mining (CIFR), the bank doubled its price target to $12. The analysis also covered adjustments for CleanSpark (CLSK) and Marathon Digital Holdings (MARA).
JPMorgan analysts estimate a 50% probability that Riot, Cipher, and IREN will secure near-term HPC colocation deals, using Core Scientific's agreement with CoreWeave as a benchmark, valuing such contracts between $3.7 million and $8.6 million per megawatt.