Applied Digital Corporation (APLD) is standing squarely at the epicenter of the artificial intelligence (AI) surge. As a developer and owner of AI-focused data centers, the company is riding the infrastructure wave that powers the boom. In just the past year, the stock delivered a three-digit return, firmly placing it among the year’s standout performers. However, on Wednesday, Feb. 18, APLD stock slipped 4.9% after SEC filings revealed that NVIDIA Corporation (NVDA) had sold its entire stake. The AI chi ...

Data centers are popping up across the country to handle AI demand. Which of these two stocks has greater upside?As the demand for artificial intelligence (AI) compute has increased exponentially, so has the need for massive data centers to process all that data at high speeds. It has led to a boom in not just the chips and AI infrastructure that processes that data, but also in the construction and development of actual data centers.Applied Digital (APLD 7.90%) and Riot Platforms (RIOT 3.33%) are both data ...

Core Insights - The sell-off in CoreWeave's stock was triggered by a report indicating significant financing challenges for its infrastructure expansion [1] - Concerns about liquidity in the AI infrastructure sector were heightened by Blue Owl's decision to stop quarterly redemptions for one of its retail-focused funds, seen as a warning sign [2] Data Center Financing Issues - CoreWeave's facility was meant to be a flagship site for its GPU-as-a-service model, but financing worries have emerged [2] - The market reaction suggests that investors are increasingly focused on the stability of data center financing rather than just growth metrics [4] Impact on Related Companies - The negative sentiment quickly affected other companies in the same capital-intensive ecosystem, including Nebius and Applied Digital [3] - Nebius, aiming to be Europe's leading AI factory, shares a similar reliance on debt-fueled hardware acquisition, which has raised concerns among investors [3] - Applied Digital is also vulnerable to shifts in private credit markets, especially after NVIDIA reduced its stake in the company [3] Market Reactions - Despite reassurances from Blue Owl and CoreWeave about a $500 million bridge loan and intact project timelines, market reactions indicate deepening concerns about financing [4] - The price movements of CoreWeave, Nebius, and Applied Digital reflect that investors are prioritizing evidence of solid data center financing over growth and GPU counts [4]

We recently published 10 Losing Stocks in an Otherwise Optimistic Market. Applied Digital Corp. (NASDAQ:APLD) was one of the worst performers on Wednesday. Applied Digital extended its losing streak to a sixth straight day on Wednesday, dropping 4.92 percent to close at $31.91 apiece, as investor sentiment was further dragged by news that Nvidia Corp. has entirely disposed of its stake in the company. Apart from Applied Digital Corp. (NASDAQ:APLD), Nvidia—considered the technology benchmark bolstering AI ...

Core Insights - Applied Digital (APLD) and Vertiv Holdings (VRT) are positioned in the data center infrastructure market, focusing on AI-driven facilities and critical power systems respectively [1][6] - The global Data Center Infrastructure Management market is expected to grow from $4.29 billion in 2026 to $9.99 billion by 2031, with a CAGR of 18.43% [2] Applied Digital (APLD) - APLD is strategically positioned to benefit from the growth of AI-focused data centers, emphasizing energy-efficient design and scalable power architecture [3] - The company has contracted 600 megawatts across Polaris Forge 1 and 2, representing approximately $16 billion in potential lease revenues [4] - APLD's fiscal 2026 loss is estimated at 36 cents per share, indicating a year-over-year improvement of 55% [5] Vertiv Holdings (VRT) - VRT provides essential power and thermal management solutions for data centers, serving customers in 130 countries [6] - The company is co-developing an 800-volt DC power architecture with NVIDIA, ensuring its solutions remain relevant as power requirements increase [7] - VRT has a backlog of $15 billion and a book-to-bill ratio of approximately 2.9x, indicating strong revenue visibility [9] Stock Performance and Valuation - Over the past six months, VRT shares have increased by 88.7%, while APLD shares have surged by 118.7% [11] - VRT is trading at a forward price-to-sales ratio of 6.95x, significantly lower than APLD's 19.95x, suggesting a more attractive valuation for VRT [14] - VRT is currently rated as a Zacks Rank 1 (Strong Buy), while APLD holds a Zacks Rank 3 (Hold) [19]

Core Viewpoint - Nvidia has divested its shares in Applied Digital, Recursion Pharmaceuticals, and WeRide, indicating a strategic shift in its investment portfolio [1] Group 1: Company Actions - Nvidia disclosed in a filing that it no longer holds shares in Applied Digital, a company focused on digital infrastructure [1] - The company has also exited its investment in Recursion Pharmaceuticals, which specializes in drug discovery [1] - Additionally, Nvidia has divested from WeRide, an autonomous-driving technology company [1]

Applied Digital Corporation (NASDAQ:APLD) is among the 11 Best Bitcoin and Blockchain Stocks to Invest in. Roth Believes that Another Hyperscaler Lease is 'Imminent' for Applied Digital Corporation (APLD) Applied Digital Corporation (NASDAQ:APLD) is among the Best Bitcoin Stocks.   Roth Capital said that Applied Digital has started construction on Delta Forge 1, its AI Factory campus in a strategic southern U.S. market, which is planned to support an initial 430 MW of utility power. The firm believes th ...

分组1 - Applied Digital Corporation (APLD) has demonstrated a significantly improved growth trajectory as indicated in its latest earnings report [1] - The company's hyperscale AI campus strategy is transitioning from construction to revenue generation, aligning with investor expectations [1] 分组2 - The focus is on identifying promising biotechnology companies that innovate through unique mechanisms of action and first-in-class therapies [1] - The analysis emphasizes evaluating the science behind drug candidates, the competitive landscape, clinical trial design, and potential market opportunities while balancing financial fundamentals [1]

Core Insights - Applied Digital Corporation (NASDAQ:APLD) is recognized as one of the 15 AI stocks experiencing significant growth, with price targets being raised by analysts following positive Q2 earnings commentary [1][2][7] Group 1: Price Target Increases - Northland raised its price target on Applied Digital Corporation from $40 to $56 while maintaining an Outperform rating [1] - Craig-Hallum increased its price target from $39 to $40, also keeping a Buy rating, citing advanced discussions on three sites with a potential capacity of 900 megawatts (MW) [3] Group 2: Capacity Expansion Potential - The company is in advanced discussions for up to three sites totaling approximately 900 MW, with each site potentially expanding to 1 gigawatt (GW), which could lead to a total growth capacity of 5 GW over the next several years when combined with existing campuses [2][3] Group 3: Technology Investments - Applied Digital Corporation has made a $15 million investment in Corintis, a firm focused on developing liquid chip-cooling technology for AI applications, and has formed a partnership with Babcock & Wilcox Enterprises, Inc. [4] - The company specializes in designing, developing, and operating digital infrastructure for high-performance computing (HPC) and AI industries [4]

Core Insights - Applied Digital (APLD) is enhancing its competitive edge by treating energy availability as a strategic asset rather than a passive input [1] - The company is collaborating with Babcock and Wilcox Enterprises and investing $15 million in Corintis to address power deployment speed and thermal efficiency in AI infrastructure [1][2] Energy Strategy - The partnership with Babcock and Wilcox aims to accelerate on-site power generation using steam turbine technology for new natural gas-fired plants, potentially shortening time-to-power for new campuses [2] - This initiative may lead to faster lease commencements and improved utilization of contracted megawatts, enhancing revenue visibility [2] Investment in Cooling Technology - The investment in Corintis aligns with APLD's goal of supporting higher-density AI workloads, addressing cooling constraints as customers transition to next-generation GPUs [2] - If the micro-channelled cold plate systems perform effectively, APLD could sustain higher compute density per building [2] Execution Challenges - Both power generation and advanced cooling strategies involve complexities such as permissions, construction timelines, and performance consistency at hyperscale [3] - The Zacks Consensus Estimate for fiscal third-quarter revenues is $75.06 million, reflecting a 41.83% year-over-year increase [3][7] Competitive Landscape - APLD faces competition from Vertiv Holdings and nVent Electric, which provide power delivery and thermal management solutions for AI infrastructure [4] - Vertiv and nVent's vendor model requires less capital per megawatt compared to APLD's integrated campus approach, which concentrates power deployment risk [4] Stock Performance and Valuation - APLD shares have increased by 148.6% over the past six months, significantly outperforming the broader Zacks Finance sector [5] - The stock is considered overvalued with a forward 12-month price/sales ratio of 21.62X compared to the sector's 9.23X, and it has a Value Score of F [8] Earnings Estimates - The Zacks Consensus Estimate for the third-quarter fiscal 2026 loss is projected at 10 cents per share, widening by 3 cents over the past 30 days [10]