RUM Stock Jumps Premarket: Analyst Sees Over 200% Upside, Says AI Shift Not Yet Priced In

Lake Street has started covering RUM with a $25 price target, citing the company’s AI infrastructure pivot.

• Lake Street’s $25 price target for RUM implies a 226% upside. 
• The analyst believes RUM’s AI expansion and growing infrastructure could boost its valuation. 
• RUM's 250 MW power deal and $13.7 billion Anthropic contract strengthen its AI business prospects. 

RUM Group (RUM) stock ticked higher in Wednesday’s premarket as Lake Street initiated coverage, implying more than 200% upside. The analyst sees RUM’s pivot into AI data centers and neocloud infrastructure as a major value driver, adding that investors have yet to fully price in the transformation. 

RUM Group stock edged up nearly 4% in Wednesday’s premarket, after a 3% gain on Tuesday.  

Lake Street Sees 200% Upside For RUM 

On Tuesday, Lake Street started coverage of RUM Group with a ‘Buy’ rating and a $25 price target, according to a summary of the note on The Fly, implying a 226% upside to Tuesday’s closing price. 

Lake Street believes the market has not fully adjusted its view of Rum Group following its strategic shift from a traditional video-platform roots toward AI-related infrastructure and services. The analyst said the combination of contracted AI demand, new power capacity and the company’s move into the neocloud market could change how investors value the business.

RUM’s AI Pivot And Contracts 

RUM entered the AI infrastructure business in June by buying German cloud company Northern Data in an all-stock deal worth about $767 million. After the deal, the company changed its name to Rumble Group. It now operates two businesses: the Rumble media platform and Quake AI, its AI infrastructure unit.  

Lake Street pointed to the company’s purchase of 250 megawatts of power from Northern Data as an important step in building its data center business. The deal gives Rum Group additional infrastructure capacity as demand for AI-related computing resources continues to grow.

RUM has also secured a six-year agreement with Anthropic, valued at $13.7 billion. The contract provides a major source of long-term revenue visibility and strengthens the case that Rum Group is becoming a contracted AI infrastructure provider rather than remaining primarily a video-focused business.

RUM Stock: Retail View 

On Stocktwits, retail sentiment around the stock remained ‘bearish’.  

A user said, “Anthropic deal worth $13.7 billion is big. But would anyone be surprised an even bigger GOVERNMENT cloud contract comes next?”

Another user said, “Funny how all the analysts are saying $15 and up and we are still sitting at $7.” 

RUM stock has gained 21% year-to-date. 

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