Rumble Group (RUM) shares rose nearly 4% in Wednesday premarket trading after gaining 3% the previous day. The move followed Lake Street’s initiation of coverage with a Buy rating and a $25 price target, which implies 226% upside from Tuesday’s close.

Lake Street argues that investors may not yet have accounted for the company’s shift from a video platform toward AI infrastructure and cloud services. The analyst pointed to contracted demand, expanding power capacity and Rumble’s entry into the neocloud market as factors that could reshape how the company is valued.

Rumble entered the AI infrastructure business in June through its roughly $767 million, all-stock acquisition of German cloud company Northern Data. It now operates the Rumble media platform alongside Quake AI, its infrastructure unit.

The acquisition also gave Rumble access to 250 megawatts of power, which Lake Street views as an important resource for building out data centers as demand for AI computing grows. The company has also signed a six-year Anthropic agreement valued at $13.7 billion. The deal provides long-term revenue visibility and supports the view that Rumble is developing into a contracted AI infrastructure provider.

Despite the analyst’s optimistic outlook, retail sentiment on Stocktwits was described as bearish. Some users highlighted the scale of the Anthropic agreement and speculated about potential future cloud contracts, while others questioned why the shares remained near $7 despite higher analyst price targets.

RUM shares were up 21% year to date.