Why AI Infrastructure Stocks Outperform Bitcoin Miners in 2025

Jim Cramer's skepticism toward Riot Platforms (RIOT) has proven prescient. Since the “Mad Money” host warned investors about the Bitcoin miner's reliance on volatile crypto prices in late 2024, RIOT's stock has lagged Bitcoin itself—a stark contrast to its earlier growth narrative. Meanwhile, AI-driven energy infrastructure stocks have surged, fueled by regulatory tailwinds and the insatiable power demands of advanced computing. The writing is on the wall: in 2025, the future belongs to companies building the backbone of AI, not those betting on Bitcoin's roller-coaster ride.

The Case Against Bitcoin Miners: RIOT's Struggles

Cramer's criticism of RIOT hinged on two pillars: its lack of profitability and Bitcoin's inherent volatility. In Q1 2025, RIOT reported a net loss of $296.4 million, despite record revenue growth, due to non-cash charges and rising operational costs. Even as Bitcoin's price hit $82,534 in March 2025—nearly doubling from its 2023 lows—RIOT's stock underperformed. A reveals a 19% decline in RIOT's shares over six months, while Bitcoin gained. The culprit? Structural headwinds:

• Cost Inflation: Bitcoin mining costs rose to $43,808 per coin (excluding depreciation) in Q1 2025, up 90% from 2024, due to the April 2024 halving event and a 41% jump in global network hash rate.
• Regulatory Risks: U.S. policies now favor energy infrastructure over crypto, with tariffs and environmental regulations sidelining miners reliant on fossil fuels.

Cramer's advice—“diversify, don't bet”—now looks like genius.

AI Infrastructure: Where the Real Growth Lies

While Bitcoin miners scramble, AI infrastructure stocks are thriving. The $100 billion AI chip market and its energy-hungry data centers are driving demand for reliable, scalable power. Here's why nuclear and LNG plays are winning:

1. Regulatory Tailwinds

• Nuclear Renaissance: The U.S. executive order prioritizing domestic uranium and rare earth production has boosted firms like Energy Fuels (UUUU) (+35% YTD) and NuScale Power (SMR), whose small modular reactors (SMRs) offer stable power for data centers.
• LNG Exports Unleashed: Reversing Biden's LNG export moratorium has fueled gains in Cheniere (LNG) (+28% YTD) and Sempra (SRE), which now serve global markets hungry for U.S. natural gas.

2. Hedge Fund Sentiment Shifts

Institutional money is fleeing crypto plays for infrastructure. As of Q1 2025:
- Short Interest: RIOT's short interest rose to 14% of its float, signaling investor pessimism.
- AI/Infrastructure Buys: Funds like Paulson & Co. and Citadel have piled into NextEra Energy (NEE) and Dominion Energy (D), betting on the AI-energy nexus.

3. Valuation Metrics Matter

• RIOT: A price-to-sales ratio of 0.5x (vs. 10-year average of 1.2x) reflects skepticism about its Bitcoin-centric model.
• Nuclear/LNG Plays: Energy Fuels (UUUU) trades at 4.2x EV/EBITDA, a fraction of its 2024 highs, offering upside as uranium prices climb.

The AI-Infrastructure Synergy: A Symbiotic Future

AI requires 24/7 baseload power, making nuclear and LNG ideal partners:
- Nuclear's Baseload Stability: SMRs can operate at 90% capacity, unlike solar/wind. NuScale (SMR)'s partnerships with Microsoft and Alphabet highlight this.
- LNG's Flexibility: Data centers in Texas and the Pacific Northwest are now fueled by U.S. LNG, reducing reliance on coal.

Investment Playbook for 2025

1. Avoid Bitcoin Miners: RIOT and peers face existential risks. Short-term rallies in Bitcoin won't offset structural costs.
2. Go Long on Nuclear/LNG:
3. Energy Fuels (UUUU): Buy dips below $25; target $35 by year-end as uranium demand surges.
4. Cheniere (LNG): Hold for LNG export terminal completions; 2025 EPS estimates at $6.20 suggest 15% upside.
5. Hedge with AI-Linked Utilities: Dominion Energy (D)'s partnerships with cloud providers offer steady dividends and growth.

Conclusion: The AI Infrastructure Surge Isn't a Fad

Jim Cramer's skepticism toward RIOT underscores a broader truth: Bitcoin's volatility is a liability, while AI's energy demands are a structural opportunity. With regulatory support and investor capital flowing to infrastructure, this trend isn't reversing anytime soon. For 2025 and beyond, the smart money is on the builders—not the bettors.

The data tells the story: infrastructure is the new frontier. Don't be left in the dust.