Latest news with #AppliedDigitalCorporation
Yahoo
2 days ago
- Business
- Yahoo
Why CoreWeave, Inc. (CRWV) Skyrocketed On Tuesday
We recently published a list of . In this article, we are going to take a look at where CoreWeave, Inc. (NASDAQ:CRWV) stands against other Tuesday's best performers. CoreWeave extended its winning streak on Tuesday, jumping 25.19 percent to close at $150.48 apiece as investor optimism was fueled by its $7-billion deal with Applied Digital Corporation (NASDAQ:APLD). In a statement, Applied Digital Corporation (NASDAQ:APLD) said that it entered into two 15-year lease agreements with CoreWeave, Inc. (NASDAQ:CRWV), under which the former will deliver 250 megawatts of critical IT load to host the latter's artificial intelligence (AI) and high-performance computing (HPC) infrastructure at its Ellendale, North Dakota data center campus. A close up of a circuit board, its microchips creating a powerful computing system. Pursuant to the lease contracts, CoreWeave, Inc. (NASDAQ:CRWV) also retains the option to access an additional 150 MW of critical IT load at Ellendale, positioning the campus as a scalable hub for expanding AI and HPC workloads. Applied Digital is expected to deliver the first 100 MW of data center in the fourth quarter of the year, while the remaining 150 MW is expected to come online in the middle of 2026. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
3 days ago
- Business
- Yahoo
Why Applied Digital Corporation (APLD) Skyrocketed On Monday
We recently published a list of . In this article, we are going to take a look at where Applied Digital Corporation (NASDAQ:APLD) stands against other top-performing stocks on Monday. Applied Digital saw its share prices increase by 48.46 percent on Monday to close at $10.14 apiece after clinching a $7-billion deal with CoreWeave. In a statement, Applied Digital Corporation (NASDAQ:APLD) said that it entered into two 15-year lease agreements with CoreWeave, under which the former will deliver 250 megawatts of critical IT load to host CoreWeave's artificial intelligence (AI) and high-performance computing (HPC) infrastructure at its Ellendale, North Dakota data center campus. An overhead view of a large-scale data center with rows of servers and blinking lights. Pursuant to the lease contracts, CoreWeave also retains the option to access an additional 150 MW of critical IT load at Ellendale, positioning the campus as a scalable hub for expanding AI and HPC workloads. Applied Digital Corporation (NASDAQ:APLD) designed Ellendale for the speed and efficiency of deployment, prime location, AI-innovative design, and access to abundant, low-cost energy. It expects to deliver the first 100 MW of data center in the fourth quarter of the year, while the remaining 150 MW is expected to come online in the middle of 2026. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Business Insider
4 days ago
- Business
- Business Insider
A data-center stock is up more than 50% today after sealing a lucrative AI partnership
Shares of Applied Digital surged as much as 54% on Monday. The data-center operator announced a lease deal with Nvidia-backed AI firm CoreWeave. The 15-year agreement is expected to generate $7 billion of revenue for Applied Digital. The move: Applied Digital Corporation stock surged as much as 54% on Monday to an intraday high of $10.54. The chart: Why: Shares of the AI data center operator soared on the announcement of two 15-year lease deals with CoreWeave that will generate $7 billion in revenue for Applied Digital. Under the terms of the deal, CoreWeave, a cloud services firm that's been backed by Nvidia, will receive 250 megawatts of data center capacity from an Applied Digital campus in North Dakota, with the option for CoreWeave to access another 150 megawatts. "We believe these leases solidify Applied Digital's position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing," said Wes Cummins, Chairman and CEO of Applied Digital. What it means: The deal is a massive win for Applied Digital, which is in the process of converting itself into a data center real estate investment trust. Data centers are seeing massive demand from the so-called AI hyperscalers, like Meta and Microsoft, as they pursue their ambitions in the booming space. A note from Needham, cited by Bloomberg, said that the deal could also pave the way for other enterprise AI customers to turn to Applied Digital for their data center needs. The note also said OpenAI could be the end customer of the lease agreement, given the ChatGPT creator's $4 billion deal with CoreWeave last month.
Yahoo
14-05-2025
- Business
- Yahoo
Is Applied Digital (APLD) One of the Best Artificial Intelligence Stocks Under $50 to Buy Now?
We recently published a list of the 13 Best Artificial Intelligence Stocks Under $50 to Buy Now. In this article, we are going to take a look at where Applied Digital Corporation (NASDAQ:APLD) stands against other AI stocks under $50. On May 8, Dan Ives of Wedbush Securities joined CNBC's 'Squawk on the Street' to discuss his bullish outlook on the AI sector and tech. Ives used the metaphor of technology speeding down the highway at 100 mph in a Ferrari, while regulation lags in the slow lane at 35 mph. He emphasized that, given this disparity, much of the oversight will be self-regulatory, as the use cases for AI are expanding rapidly. He predicted continued consolidation in the sector and stated that regulatory efforts would not halt this trend. The discussion also touched on international trade, particularly regarding the UK, China, India, and Vietnam. Ives described any progress with the UK as a small but positive step, but stressed that the real focus for tech companies remains on China. He explained that while the UK relationship is notable, it does not have the same impact as China, and tech companies are closely monitoring developments in Asia because of their significance to larger deals. He also predicts that major tech players would acquire smaller or emerging private companies and argued that the ongoing AI revolution, unstoppable even in the face of tariffs, will drive companies to position themselves advantageously for the future, with consolidation playing a key role. Ives acknowledged the current regulatory uncertainty and unexpected moves from major tech partners but maintained his bullish stance on big tech overall due to accelerating use cases and spending in the sector. Ives also discussed the enterprise adoption of agentic AI, or AI agents, and when their impact on business efficiency and margins would become evident. Ives emphasized that the AI revolution is spreading across software, cybersecurity, and the internet, and that tariffs will not impede this fourth industrial revolution. In fact, Ives thinks that tariffs might even accelerate AI adoption by increasing price pressures and driving companies to seek efficiencies, highlighting that this earnings season was pivotal, with accelerated spending on AI. He observed that AI-related budgets have surged from 1% to 2% a year ago to about 15% now, and argued that neither regulatory hearings nor tariffs can slow this momentum. He likened the current AI revolution to a decisive last-second play in basketball, as it's delivering unexpected and transformative results for the tech sector. We first sifted through ETFs and financial media reports to compile a list of the top AI stocks under $50. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). An overhead view of a large-scale data center with rows of servers and blinking lights. Share Price as of May 12: $5.39 Number of Hedge Fund Holders: 42 Applied Digital Corporation (NASDAQ:APLD) provides digital infrastructure solutions and cloud services for the HPC and AI industries. It operates through three segments: Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. It also offers infrastructure services to crypto mining customers and GPU computing solutions for workloads related to AI, ML, and other HPC tasks. As of FQ3 2025, Applied Digital operates 286 megawatts of fully contracted data center hosting capacity for currency clients across 2 locations in North Dakota, which are both running at full capacity and making $35.2 million in revenue for the quarter. On April 15, Kevin Dede from H.C. Wainwright maintained a Buy rating on Applied Digital Corp. (NASDAQ:APLD) but lowered the price target from $12 to $7. The Ellendale campus is expected to be a major growth catalyst for the company. This is Applied Digital's next-gen data center development in North Dakota, which is backed by significant financing. This includes a potential investment of ~$5 billion from Macquarie Asset Management and a $375 million financing arrangement with Sumitomo Mitsui Bank Corporation. The first 100-megawatt building is expected to generate revenue in late 2025. Overall, APLD ranks 4th on our list of the best artificial intelligence stocks under $50 to buy now. While we acknowledge the growth potential of APLD, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than APLD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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Yahoo
13-05-2025
- Business
- Yahoo
Is Applied Digital (APLD) the Best AI Stock to Buy Under $10?
We recently published a list of . In this article, we are going to take a look at where Applied Digital Corporation (NASDAQ:APLD) stands against other best AI stocks to buy under $10. Fears of an artificial intelligence bubble bursting appear overblown. That's the sentiment echoed on Wall Street in the aftermath of tech giants delivering better-than-expected quarterly results and reiterating investments in AI infrastructure. Increased investments in AI Infrastructure and other solutions have once again affirmed sentiments in the burgeoning segment that was the catalyst behind US markets powering to record levels last year. At the beginning of the year, investors became worried that the AI surge might collapse in the aftermath of the Chinese company DeepSeek creating a sophisticated large language model that needed less energy and funding. The news from DeepSeek caused a significant change in market sentiment and led to a decline in AI stocks that had experienced substantial increases for most of the year. Fast forward, tech giants signaling they will continue to invest in AI and cloud infrastructure is a tailwind that continues to reiterate sentiments around AI stocks. Companies ramping up investments to address capacity constraints in their cloud unit, as others ramp investments in AI-powered servers and data center assets, are a positive for the overall sector. According to AMD CEO Lisa Su, ordering patterns around everything AI remains strong, signaling people and companies are not making short-term decisions. Initially, there were concerns that companies pursuing opportunities around AI had spent far too much and too quickly to build out infrastructure and would need to go slow. Consequently, tech giants whose valuations had skyrocketed to record highs pulled back significantly as investors remained wary of their long-term outlook amid an uncertain macroeconomic environment that is crumbling amid a ferocious trade war and export controls. Continued investments in AI should be expected as companies look to strengthen their product and services portfolio while also strengthening their competitive edge. There have been concerns that heightened regulations and authorities placing guardrails could derail innovations around artificial intelligence. However, that appears not to be the case. According to Wedbush Securities global head of technology research Dan Ives, 'Innovations around AI are growing at 100 miles per hour while regulatory pressure is only growing at 35 miles an hour'. According to Ives no amount of regulation is going to change the heightened amount of spending around AI. 'The use cases are exploding and no amount of regulation is going to change it' said Ives in an interview with CNBC. Ives added: 'In terms of use cases, US commercial businesses are exploding. Right now we have 85 use cases, a year ago we had 10. I think what we are starting to see is more and more that it is across verticals healthcare financials government and retail among others.' The fact that executives from some of the biggest tech giants have denied they are cutting back spending on servers and data makes the case for why investors should pay attention to some of the AI stocks trading at highly discounted valuations. We sifted through Finviz and financial media reports to compile a list of top AI stocks trading below $10. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order based on the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database, which tracks the moves of over 900 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). An overhead view of a large-scale data center with rows of servers and blinking lights. Stock Price as of May 12: $5.39 Number of Hedge Fund Holders: 41 Applied Digital Corporation (NASDAQ:APLD) is an information technology services company that designs, develops, and operates digital infrastructure solutions and cloud services for high-performance computing (HPC) and artificial intelligence industries. It offers infrastructure services to crypto mining customers and GPU computing solutions for critical workloads related to AI, machine learning, and other HPC tasks. On April 23, Needham reiterated a Buy rating on the stock with a $10 price target buoyed by the company's prospects in the burgeoning cloud computing industry. Applied Digital Corporation's (NASDAQ:APLD) long-term prospects hinge on increased spending in AI Hardware and other processing capabilities. Consequently, the stocks sentiments have received a significant boost on confirmation that tech giants led by Microsoft and Meta plan to continue spending on AI hardware and processing capabilities. Applied Digital Corporation's (NASDAQ:APLD) delivered impressive third-quarter fiscal 2025 results, characterized by a 22% year-over-year revenue increase. The company's cloud service business posted a 220% revenue increase to $17.8 million. The robust revenue growth affirms that positioning in high-performance computing infrastructure will surely generate long-term value. The company is already working on the Ellendale campus in addition to a 100MW HPC facility expected to strengthen its competitive edge in the hyperscaler market. Overall, APLD ranks 3rd on our list of best AI stocks to buy under $10. While we acknowledge the potential of APLD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than APLDbut that trades at less than 5 times its earnings check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
