Why Riot Platforms Inc (RIOT) Is Skyrocketing So Far In 2025?
We recently published a list of . In this article, we are going to take a look at where Riot Platforms Inc (NASDAQ:RIOT) stands against other data center stocks that are skyrocketing so far in 2025.
There have been murmurs of a data center and cloud computing slowdown for the past two years, but none of that has materialized and the data center industry has instead accelerated as companies double down on AI. Even after DeepSeek, investors are pretty bullish on data center stocks as AI companies are learning from DeepSeek's efficiency to create even more powerful AI models.
The data center sector is projected to grow at a 9.29% CAGR from 2025 to 2033, potentially reaching $494.5 billion by 2033. As such, there are plenty of opportunities if you dig deeper into the market and many of them have just started to rally this year. It's a good idea to look into the ones spearheading the gains.
For this article, I screened the top-performing data center stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. ().
A computer engineer working in a futuristic office, programming algorithms to mine cryptocurrency.
Number of Hedge Fund Holders In Q4 2024: 37
Riot Platforms Inc (NASDAQ:RIOT) is a Bitcoin mining company that operates data centers too.
The stock is up significantly so far in 2025 mostly due to Bitcoin rising significantly and its pivot to AI. The company announced new board members who have expertise in AI and data centers and engaged financial advisors to possibly convert its 600 MW Corsicana facility for AI and HPC.
Moreover, Riot reported mining 527 Bitcoins in January 2025, which increased 2% from the previous month and the total hash rate increased 171% year-over-year to 33.5 EH/s.
Riot has scheduled its fourth quarter and year-end 2024 earnings conference call for February 24, 2025.
The consensus price target of $17.55 implies 46.68% upside.
RIOT stock is up 15.72% year-to-date.
Overall, RIOT ranks 13th on our list of data center stocks that are skyrocketing so far in 2025. While we acknowledge the potential of RIOT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RIOT but that trades at less than 5 times its earnings, check out our report about the.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
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