Price Target Adjustment#

Roth/MKM has reduced its price target for Riot Platforms (NASDAQ:RIOT) from $42 to $38 while keeping a Buy rating on the stock. Currently, Riot shares are trading at $19.25, indicating a potential for significant growth based on the new target. However, the stock has seen a decline of 7.4% over the past week, even though it has delivered an impressive 122% return over the last year.

Capacity Developments#

The firm noted that Advanced Micro Devices (AMD) has expanded its operations to 50 megawatts (MW) under the same lease terms but with lower costs, which is expected to generate additional revenue from high-performance computing (HPC) leases. AMD has 150 MW of options remaining, which could bring its total capacity to 200 MW.

Roth/MKM also pointed out a redesign at Riot’s Corsicana facility, where two separate structures will be combined into one, increasing its capacity from 112 MW to 168 MW for the same investment of $214 million. This change suggests that the total capacity of the campus could reach approximately 756 MW.

Future Catalysts#

The firm believes that a formal lease agreement for the Corsicana facility, expected in the second half of 2026, will be a key driver for Riot Platforms, likely involving one tenant. Additionally, the near-term expansion by AMD and project financing are seen as factors that could reduce risks associated with future operations.

Earnings Report Insights#

In its recent earnings report for the first quarter of fiscal 2026, Riot Platforms reported revenue of $167.2 million, exceeding expectations of $122.26 million and marking a 9.4% increase from the previous quarter. This growth was largely due to new data center revenues, including $32.2 million from tenant fit-out services. However, the company also reported a net loss of $500 million, or $1.44 per share, which was larger than anticipated.

Analysts have reacted to these developments, with Cantor Fitzgerald raising its price target to $23 from $20 and maintaining an Overweight rating. Compass Point has reiterated a Buy rating with a $29 target, both highlighting the positive impact of the company's data center expansion.