10 Most Popular AI Stocks to Avoid Now

7. Riot Platforms, Inc. (NASDAQ:RIOT)

Year to Date Loss as of May 13: -15.64%

S&P 500 Year to Date Performance as of May 13: 4.92%

Riot Platforms, Inc. (NASDAQ:RIOT) is exploring the use of its existing infrastructure for AI and high-performance computing (HPC). It is repurposing its Bitcoin mining facilities for AI/HPC applications, especially at its Corsicana facility. Amid the restructuring drive, the company remains susceptible to the volatility in the cryptocurrency sector, which remains its core business. The stock is already down by about 14% year-to-date, while the S&P 500 has gained 4.92%

Cantor Fitzgerald cut its stock price target to $18 from $21 while maintaining an Overweight rating. The cut comes from the backdrop of Riot Platforms, Inc. (NASDAQ:RIOT) delivering a wider-than-expected loss, even on revenues increasing significantly. Revenue in Q1 2025 more than doubled to $161.4 million compared to $79.3 million the same quarter last year.

Riot Platforms, Inc. (NASDAQ:RIOT) posted a net loss of $296.4 million; a significant underperformance considering it delivered a profit of $211.8 million the same quarter last year. The wider-than-expected net loss comes as the company invests in its transition into artificial intelligence and high-performance workloads. Its push for opportunities to provide computing infrastructure used in AI and HPC faces stiff competition.