Riot Platforms Stock Gains Huge Price Target Raise on AI Pivot

Riot Platforms' stock (NASDAQ: RIOT) is up 5.85% into the open, experiencing a surge in market optimism following a significant upgrade from Citi, driven by the company's strategic shift towards artificial intelligence (AI) and high-performance computing (HPC). The upgrade signals a potentially transformative period for the bitcoin mining firm as it diversifies its revenue streams.

This price action follows an 8.65% intraday increase observed earlier in the week, spurred by record bitcoin production and a broader sector rally fueled by AI-driven data center investments. Citi's upgrade saw the firm move from a “Neutral” rating to a “Buy” rating, accompanied by a price target increase from $13.75 to $24.

The core of Citi's bullish outlook lies in Riot's strategic positioning to capitalize on the burgeoning demand for compute capacity, a direct consequence of the widespread adoption of AI technologies. Platforms are rushing to build compute capabilities, and Riot’s assets are favorably positioned to benefit from this trend. This upgrade follows Citigroup’s initial coverage of Riot Platforms in August 2025 with a “Neutral” rating, highlighting the rapid shift in sentiment surrounding the company's prospects.

Operational Excellence and Expansion

Riot's recent operational achievements further bolster the positive outlook. The company reported a record production of 477 bitcoins in August 2025, a 48% increase compared to the same period last year. This achievement underscores Riot's operational efficiency and its ability to scale its mining operations effectively. Complementing this organic growth, Riot Platforms announced the acquisition of Block Mining, a strategic move that will significantly enhance its mining capacity. The acquisition provides access to substantial power resources, capable of supporting up to 305 MW by the end of 2025. This is projected to increase Riot's hashrate targets to 36.3 EH/s by the end of 2024 and 56.6 EH/s by the end of 2025, solidifying its position among the leading U.S.-listed miners.

This strategic pivot towards AI and HPC is further evidenced by recent board appointments. In February 2025, Riot Platforms added Jaime Leverton, Doug Mouton, and Michael Turner to its board, bringing specialized expertise in converting bitcoin mining assets for AI and HPC applications. These appointments, influenced by investors Starboard Value and D.E. Shaw, signal a clear commitment to diversifying the company's focus. Riot has also engaged Evercore and Northland Capital to explore potential AI and HPC uses for its Corsicana, Texas facility, aiming to maximize the value of its extensive power capacity.

While Riot Platforms reported a doubling of revenue year-over-year in the first quarter of 2025, rising costs and weak technical indicators have presented challenges. The stock's correlation to Bitcoin has been inconsistent, making it an unreliable proxy for direct Bitcoin exposure. However, analysts view the company's strategic initiatives in AI and HPC as a positive development, mitigating some of the risks associated with its core bitcoin mining business.