RUM Group stock climbs on Texas Capital buy rating

RUM Group stock rose 5.7% in morning trading on Wednesday following a buy rating from Texas Capital Securities with a price target of $15.00. The firm published its coverage note late Monday.

Texas Capital said RUM is transforming from a video-sharing platform into an AI infrastructure and services company. The company combines its Quake AI compute business with its creator-focused media ecosystem.

The firm highlighted RUM's six-year AI services agreement valued at $13.7 billion, which press reports have linked to Anthropic. Texas Capital views the agreement as validation of Quake AI's technology and an improvement in long-term revenue visibility.

RUM currently has approximately 70 megawatts of available compute capacity and a development pipeline exceeding 1 gigawatt. The company also receives strategic backing from Tether, which Texas Capital said distinguishes RUM from other neocloud providers.

The stock declined more than 11% in the previous week before the rating was published.

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