Data Center Developers Shift Focus to AI Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy RIOT?
Source: Fool
- Applied Digital's Meteoric Growth: Applied Digital's stock has surged approximately 260% over the past year, with a recent quarterly revenue increase of 250% year-over-year and a 76% reduction in net loss, indicating strong growth potential in the AI data center sector.
- Long-Term Contracts Secure Revenue: The company has signed long-term contracts with two hyperscalers, including CoreWeave, ensuring revenue stability and securing $16 billion in long-term lease agreements, targeting $1 billion in net operating income within five years.
- Riot Platforms' Transition Strategy: Riot Platforms reported $180 million in revenue and $104 million in net income in its latest quarter, and while Bitcoin price volatility affects earnings, it is accelerating its pivot to AI data centers to diversify revenue streams.
- New Facility Construction and Expected Earnings: Riot is building a new data center in Rockdale, Texas, expected to generate up to $1 billion in revenue over ten years, with projections of $1 billion in revenue and $125 million in net income by 2028, reflecting confidence in long-term growth.
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Analyst Views on RIOT
Wall Street analysts forecast RIOT stock price to rise
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 16.220
Low
20.00
Averages
27.00
High
42.00
Current: 16.220
Low
20.00
Averages
27.00
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.
Riot Platforms Schedules Q4 2025 Earnings Call
- Earnings Call Announcement: Riot Platforms has scheduled its Q4 and year-end 2025 earnings conference call for March 2, 2026, at 4:30 PM EST, aimed at providing investors with insights into its financial performance and future outlook.
- Webcast Availability: The conference call will be accessible via an audio-only webcast, allowing investors to register through the provided link to ensure timely access to the company's financial information and strategic direction.
- Company Vision and Mission: Riot Platforms aims to be the world's most trusted digital infrastructure platform, focusing on Bitcoin mining and large-scale data center development to meet the growing demand for high-density computing through innovation and community partnerships.
- Business Expansion Strategy: The company currently operates Bitcoin mining facilities in Texas and Kentucky, with engineering and fabrication capabilities in Denver and Houston, and is expanding into data center development, further solidifying its foundational role in the digital economy.
See More
Data Center Developers Shift Focus to AI Market
- Applied Digital's Meteoric Growth: Applied Digital's stock has surged approximately 260% over the past year, with a recent quarterly revenue increase of 250% year-over-year and a 76% reduction in net loss, indicating strong growth potential in the AI data center sector.
- Long-Term Contracts Secure Revenue: The company has signed long-term contracts with two hyperscalers, including CoreWeave, ensuring revenue stability and securing $16 billion in long-term lease agreements, targeting $1 billion in net operating income within five years.
- Riot Platforms' Transition Strategy: Riot Platforms reported $180 million in revenue and $104 million in net income in its latest quarter, and while Bitcoin price volatility affects earnings, it is accelerating its pivot to AI data centers to diversify revenue streams.
- New Facility Construction and Expected Earnings: Riot is building a new data center in Rockdale, Texas, expected to generate up to $1 billion in revenue over ten years, with projections of $1 billion in revenue and $125 million in net income by 2028, reflecting confidence in long-term growth.
See More
Surge in Demand for AI Data Centers
- Applied Digital's Meteoric Growth: Applied Digital's stock has surged approximately 260% over the past year, with a recent quarterly revenue growth of 250% year-over-year and a 76% reduction in net loss, indicating strong performance in its pivot to AI data centers and targeting $1 billion in net operating income over the next five years.
- Riot Platforms' Profitability Improvement: Riot Platforms generated $180 million in revenue and achieved $104 million in net income in its latest quarter, a significant turnaround from a $154 million net loss a year ago, showcasing its potential for revenue diversification beyond Bitcoin mining.
- Accelerated Data Center Construction: Applied Digital is constructing multiple data centers, including the Polaris 3 and Delta Forge 1, both set to open in 2027, and has secured $16 billion in long-term lease agreements with CoreWeave, further solidifying its market position.
- Riot's Partnership with AMD: Riot Platforms has signed a 10-year lease agreement with AMD for a new data center, expected to generate up to $1 billion in revenue, and anticipates revenue growth in fiscal 2026, highlighting its strategic pivot towards AI data centers.
See More
US Stocks Rally as S&P 500 Hits One-Week High Following Supreme Court Ruling
- Market Recovery: The S&P 500 index rose by 0.58%, reaching a one-week high, primarily driven by the Supreme Court's ruling against Trump's global tariffs, which is expected to boost economic growth and improve market sentiment.
- Weak Economic Data: The US Q4 GDP grew at an annualized rate of only 1.4%, significantly below the expected 2.8%, indicating fragility in the economic recovery and potentially leading the Fed to adopt a more cautious approach in future rate decisions.
- Rising Inflation Pressures: The December core PCE price index increased by 3.0% year-over-year, surpassing expectations of 2.9%, which may impact the Fed's monetary policy and limit its ability to cut rates, thereby affecting market liquidity.
- Positive Earnings Outlook: Over 74% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, providing support for the market and demonstrating corporate resilience amid economic uncertainties.
See More
Riot Platforms Stock Rises as Activist Investor Pressures Management
- Shareholder Pressure: Riot Platforms' stock closed nearly 6% higher on Wednesday, primarily driven by activist investor Starboard Value's letter to CEO Jason Les and Chairman Benjamin Yi, aimed at urging the company to pursue its transformation strategy more vigorously.
- Transformation Strategy: While Starboard praised Riot's efforts in artificial intelligence and high-performance computing hosting services, it pointed out that the company's stock price has lagged behind other miners transitioning into these sectors, stressing the need for more material deals to be completed promptly.
- Market Reaction: Although Riot has not publicly responded to Starboard's letter, the market's optimistic sentiment regarding its future potential has significantly increased, with investors eager for the company's diversification into AI and HPC sectors.
- Investor Confidence: Starboard's pressure indicates that activist investors have limited patience for management, and if Riot can successfully diversify, it is expected to capitalize on market opportunities, driving future growth.
See More
Activist Investor Urges Riot to Accelerate Transformation
- Shareholder Pressure: Activist investor Starboard Value sent a letter to Riot CEO Jason Les and Chairman Benjamin Yi, urging management to intensify efforts in adjacent business activities to match the success of other crypto miners and improve the company's stock performance.
- Stock Price Surge: Riot Platforms' stock closed nearly 6% higher on Wednesday, not due to Bitcoin price movements but rather driven by the proactive actions of Starboard, indicating market confidence in the company's transformation potential.
- Transformation Strategy: Riot is leveraging its existing assets to expand into artificial intelligence and high-performance computing hosting services; while Starboard commended management's efforts, it highlighted that Riot's stock performance in these areas lags behind peers, stressing the need for expedited deal-making to secure higher-quality transactions.
- Market Potential: The pressure from activist investors is not surprising, as Starboard is known for applying pressure; Riot's leadership may strive to demonstrate progress in attracting investments and diversifying its business to capitalize on this promising market opportunity.
See More
Riot Platforms Schedules Q4 2025 Earnings Call
- Earnings Call Announcement: Riot Platforms has scheduled its Q4 and year-end 2025 earnings conference call for March 2, 2026, at 4:30 PM EST, aimed at providing investors with insights into its financial performance and future outlook.
- Webcast Availability: The conference call will be accessible via an audio-only webcast, allowing investors to register through the provided link to ensure timely access to the company's financial information and strategic direction.
- Company Vision and Mission: Riot Platforms aims to be the world's most trusted digital infrastructure platform, focusing on Bitcoin mining and large-scale data center development to meet the growing demand for high-density computing through innovation and community partnerships.
- Business Expansion Strategy: The company currently operates Bitcoin mining facilities in Texas and Kentucky, with engineering and fabrication capabilities in Denver and Houston, and is expanding into data center development, further solidifying its foundational role in the digital economy.
See More
Data Center Developers Shift Focus to AI Market
- Applied Digital's Meteoric Growth: Applied Digital's stock has surged approximately 260% over the past year, with a recent quarterly revenue increase of 250% year-over-year and a 76% reduction in net loss, indicating strong growth potential in the AI data center sector.
- Long-Term Contracts Secure Revenue: The company has signed long-term contracts with two hyperscalers, including CoreWeave, ensuring revenue stability and securing $16 billion in long-term lease agreements, targeting $1 billion in net operating income within five years.
- Riot Platforms' Transition Strategy: Riot Platforms reported $180 million in revenue and $104 million in net income in its latest quarter, and while Bitcoin price volatility affects earnings, it is accelerating its pivot to AI data centers to diversify revenue streams.
- New Facility Construction and Expected Earnings: Riot is building a new data center in Rockdale, Texas, expected to generate up to $1 billion in revenue over ten years, with projections of $1 billion in revenue and $125 million in net income by 2028, reflecting confidence in long-term growth.
See More
Surge in Demand for AI Data Centers
- Applied Digital's Meteoric Growth: Applied Digital's stock has surged approximately 260% over the past year, with a recent quarterly revenue growth of 250% year-over-year and a 76% reduction in net loss, indicating strong performance in its pivot to AI data centers and targeting $1 billion in net operating income over the next five years.
- Riot Platforms' Profitability Improvement: Riot Platforms generated $180 million in revenue and achieved $104 million in net income in its latest quarter, a significant turnaround from a $154 million net loss a year ago, showcasing its potential for revenue diversification beyond Bitcoin mining.
- Accelerated Data Center Construction: Applied Digital is constructing multiple data centers, including the Polaris 3 and Delta Forge 1, both set to open in 2027, and has secured $16 billion in long-term lease agreements with CoreWeave, further solidifying its market position.
- Riot's Partnership with AMD: Riot Platforms has signed a 10-year lease agreement with AMD for a new data center, expected to generate up to $1 billion in revenue, and anticipates revenue growth in fiscal 2026, highlighting its strategic pivot towards AI data centers.
See More
US Stocks Rally as S&P 500 Hits One-Week High Following Supreme Court Ruling
- Market Recovery: The S&P 500 index rose by 0.58%, reaching a one-week high, primarily driven by the Supreme Court's ruling against Trump's global tariffs, which is expected to boost economic growth and improve market sentiment.
- Weak Economic Data: The US Q4 GDP grew at an annualized rate of only 1.4%, significantly below the expected 2.8%, indicating fragility in the economic recovery and potentially leading the Fed to adopt a more cautious approach in future rate decisions.
- Rising Inflation Pressures: The December core PCE price index increased by 3.0% year-over-year, surpassing expectations of 2.9%, which may impact the Fed's monetary policy and limit its ability to cut rates, thereby affecting market liquidity.
- Positive Earnings Outlook: Over 74% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, providing support for the market and demonstrating corporate resilience amid economic uncertainties.
See More
Riot Platforms Stock Rises as Activist Investor Pressures Management
- Shareholder Pressure: Riot Platforms' stock closed nearly 6% higher on Wednesday, primarily driven by activist investor Starboard Value's letter to CEO Jason Les and Chairman Benjamin Yi, aimed at urging the company to pursue its transformation strategy more vigorously.
- Transformation Strategy: While Starboard praised Riot's efforts in artificial intelligence and high-performance computing hosting services, it pointed out that the company's stock price has lagged behind other miners transitioning into these sectors, stressing the need for more material deals to be completed promptly.
- Market Reaction: Although Riot has not publicly responded to Starboard's letter, the market's optimistic sentiment regarding its future potential has significantly increased, with investors eager for the company's diversification into AI and HPC sectors.
- Investor Confidence: Starboard's pressure indicates that activist investors have limited patience for management, and if Riot can successfully diversify, it is expected to capitalize on market opportunities, driving future growth.
See More
Activist Investor Urges Riot to Accelerate Transformation
- Shareholder Pressure: Activist investor Starboard Value sent a letter to Riot CEO Jason Les and Chairman Benjamin Yi, urging management to intensify efforts in adjacent business activities to match the success of other crypto miners and improve the company's stock performance.
- Stock Price Surge: Riot Platforms' stock closed nearly 6% higher on Wednesday, not due to Bitcoin price movements but rather driven by the proactive actions of Starboard, indicating market confidence in the company's transformation potential.
- Transformation Strategy: Riot is leveraging its existing assets to expand into artificial intelligence and high-performance computing hosting services; while Starboard commended management's efforts, it highlighted that Riot's stock performance in these areas lags behind peers, stressing the need for expedited deal-making to secure higher-quality transactions.
- Market Potential: The pressure from activist investors is not surprising, as Starboard is known for applying pressure; Riot's leadership may strive to demonstrate progress in attracting investments and diversifying its business to capitalize on this promising market opportunity.
See More
