B.Riley initiates coverage on WhiteFiber stock with Buy rating

Investing.com - B.Riley has initiated coverage on WhiteFiber Inc (NASDAQ:WYFI) with a Buy rating and a price target of $34.00, citing the company’s position as a leading AI infrastructure provider. The target represents significant upside potential from the current trading price of $16.91. According to InvestingPro data, the stock currently trades at high valuation multiples, with several metrics suggesting careful consideration is warranted.

WhiteFiber operates two main business segments: Data Center Colocation and AI Cloud Services. The company completed its initial public offering on August 7, 2025, after being carved out of Bit Digital, Inc. to form a pure-play AI infrastructure company, with Bit Digital retaining 74.3% ownership of WhiteFiber’s outstanding shares. With a market capitalization of $616 million and healthy gross margins of 62%, the company has demonstrated its ability to generate profits, though InvestingPro analysis indicates it’s currently burning through cash at a notable rate.

B.Riley identifies three key pillars supporting the WhiteFiber investment case: a retrofit strategy in Data Center Colocation that yields substantial time and cost savings, highly attainable Data Center MW growth, and an established yet growing GPU platform. InvestingPro subscribers have access to 10 additional key insights about WhiteFiber’s financial health and growth prospects, along with detailed valuation metrics that could help inform investment decisions.

The research firm notes that WhiteFiber has a power pipeline of approximately 600 MW under negotiation or purchase agreement, positioning the company to expand its data center footprint beyond its currently announced projects.

B.Riley views a customer announcement at NC-1 as the most significant near-term catalyst for WhiteFiber, as it would validate the company’s retrofit capabilities at scale and establish its presence in the U.S. market, while its valuation methodology applies a sum-of-the-parts approach, valuing the data center colocation business and cloud services separately.

In other recent news, WhiteFiber, Inc. announced the pricing of its upsized initial public offering (IPO) at $17.00 per share. The company is set to debut on the Nasdaq Capital Market with 9,375,000 ordinary shares. This move marks a significant step for WhiteFiber as it enters the public market. The offering is scheduled to close soon, pending customary closing conditions. Investors will be watching closely as the shares begin trading under the ticker symbol "WYFI." These developments are part of WhiteFiber’s broader strategy to expand its market presence. The IPO pricing reflects the company’s current valuation and market expectations.

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