Riot Platforms (RIOT) stock was up almost 4% on Thursday after five-star Needham analyst John Todaro issued a new note to clients in support of the data center company. Todaro reiterated a Buy rating and a $28.50 price target for RIOT stock. That price target represents a potential 16.85% upside for the company’s shares.
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Todaro maintained his bullish stance on Riot Platforms stock following a deal between Anthropic and Advanced Micro Devices (AMD). This deal saw AMD agree to invest $5 billion into Anthropic as part of the company’s push to expand its influence in the AI market. The deal will also see Anthropic use AMD’s Helios server racks for its AI needs. The first shipment of these racks is expected in the first half of 2027.
According to Todaro, the deal between Anthropic and AMD is positive news for Riot Platforms. The company has already partnered with AMD, which has 50 MW of IT capacity contracted at the Riot Platforms’ Rockdale data center. This partnership also includes the ability for AMD to expand its use of Riot Platforms’ facilities. The Needham analyst argued that it’s likely AMD will exercise its rights to more of Riot Platforms data centers after its deal with Anthropic.
Morgan Stanley Initiates Coverage of Riot Platforms Stock
Needham wasn’t the only firm that weighed in on Riot Platforms stock after the deal between Anthropic and AMD. Morgan Stanley initiated coverage of Riot Platforms with an Overweight rating and $36 price target, which suggests a roughly 48% upside for RIOT stock. The firm took a largely positive stance on Bitcoin (BTC-USD) companies that have switched to data center operations. Not only did it give a Bullish rating to Riot Platforms, but also to Hut 8 (HUT).
Is Riot Platforms Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Riot Platforms is Strong Buy, based on 13 Buy and one Hold ratings over the past three months. With that comes an average RIOT stock price target of $31, representing a potential 27.68% upside for the shares. (See RIOT Stock Forecast)
