Core Insights - Applied Digital has secured $11 billion in AI contracts, primarily through a deal with CoreWeave [1] - The company plans to build a $3 billion AI mega-campus, indicating significant growth ambitions [1] - The stock has reached 52-week highs, reflecting strong market interest and confidence [1] Financial Performance - The $11 billion contract positions Applied Digital as a key player in AI infrastructure [1] - Wall Street analysts are currently rating the stock as a strong buy, suggesting positive market sentiment [1] Market Position - The developments raise questions about whether Applied Digital can deliver on its ambitious growth promises [1] - The company is being viewed as a potential backbone of AI infrastructure, amidst speculation about its long-term viability [1]

Core Insights - The article introduces "The Undercovered Dozen," a selection of twelve actionable investment ideas focusing on tickers with less coverage, which can include both large caps and small caps [1] Group 1: Inclusion Criteria - Tickers must have a market cap greater than $100 million [1] - Tickers must have received more than 800 symbol page views in the last 90 days on Seeking Alpha [1] - Tickers must have fewer than two articles published in the past 30 days [1] Group 2: Purpose and Benefits - The initiative aims to highlight investment opportunities that may be overlooked by the market [1] - Following this account will provide a weekly review of these undercovered ideas from analysts [1]

Applied Digital Corporation (NASDAQ:APLD) is one of the best AI stocks to buy according to analysts. On August 29, Applied Digital announced it has finalized a new lease agreement with CoreWeave for an additional 150MW at its Polaris Forge 1 Campus in Ellendale, North Dakota. The new long-term lease, along with two initial ~15-year leases executed in May of the same year, brings the total contracted capacity to 400MW for CoreWeave’s AI and high-performance computing initiatives. The combined value of thes ...

Core Insights - Data center stocks experienced significant gains following the announcement of a major leasing deal between Nebius Group N.V. and Microsoft Corporation [1] Group 1: Company Developments - Nebius Group N.V. and Microsoft Corporation have entered into a substantial leasing agreement, which has positively impacted the performance of data center stocks [1] Group 2: Market Context - The article reflects on the author's extensive experience in the technology, media, and telecommunications (TMT) sectors, emphasizing the importance of momentum in investment strategies [1]

Group 1 - Applied Digital Corp. (NASDAQ:APLD) experienced a significant share price increase of 34.48% week-on-week, driven by optimism in the high-performance computing (HPC) sector and comments from CoreWeave's CEO regarding AI firms' demand for computing capacity [1][2] - The HPC sector is seeing increased investments, highlighted by Nebius Group securing an $18 billion cloud computing deal with Microsoft, indicating a growing trend in the industry [2] - Applied Digital finalized an expanded lease agreement with CoreWeave, potentially generating up to $11 billion in revenues, covering 400 MW of critical IT capacity across three long-term leases at its Polaris Forge 1 Campus in North Dakota [2][3]

Key Points Microsoft has inked a $17.4 billion, five-year infrastructure deal with the AI computing company Nebius. This gave investors confidence that demand for AI data centers remains strong. 10 stocks we like better than Applied Digital › Shares of Applied Digital (NASDAQ: APLD) flew higher this week, finishing up 34.5%. The spike came as the S&P 500 and the Nasdaq-100 were up 1.6% and 1.9%, respectively. The artificial intelligence (AI) data center company saw its shares jump this week after a ...

Core Insights - The AI infrastructure market is projected to grow from $87.6 billion in 2025 to $197.64 billion by 2030, with a CAGR of 17.71% [2] - Dell Technologies (DELL) and Applied Digital (APLD) are key players in this market, with DELL focusing on AI-optimized servers and enterprise IT solutions, while APLD specializes in high-performance computing and AI data centers [1] Dell Technologies (DELL) - DELL is experiencing strong demand for AI servers due to ongoing digital transformation and interest in generative AI applications [3] - In Q2 of fiscal 2026, DELL shipped $8.2 billion in AI servers and raised its full-year shipment guidance from $15 billion to $20 billion, indicating sustained demand [4] - DELL's AI backlog reached $11.7 billion at the end of Q2 fiscal 2026, with a $5.6 billion increase in orders during the same period [5] - The company has an expanding partner base, including Nvidia, AMD, and Meta, enhancing its ecosystem and interest in its AI solutions [6] - DELL's shares are trading at a low valuation of 0.76X forward sales, suggesting a potential investment opportunity [11][15] Applied Digital (APLD) - APLD signed a 15-year lease agreement with CoreWeave to deliver 250 megawatts of IT load at its Polaris Forge 1 campus, expected to generate approximately $7 billion in contracted revenues [7] - The Polaris Forge 1 facility is designed for AI and high-performance computing, with plans for additional facilities to scale up to 1 gigawatt [8] - APLD is also expanding with the construction of Polaris Forge 2, a $3 billion, 280MW AI Factory, expected to create over 200 jobs [9] - APLD shares have appreciated 122.2% year-to-date, driven by demand for AI infrastructure, but the stock is currently considered overvalued at 14.46X forward sales [10][15] Financial Performance and Valuation - DELL's fiscal 2026 earnings estimate is $9.54 per share, reflecting a 17.20% year-over-year increase [17] - APLD reported a loss of 80 cents per share in the previous year, indicating ongoing challenges in achieving profitability [17] - DELL holds a Zacks Rank 2 (Buy), while APLD has a Zacks Rank 3 (Hold), suggesting a stronger investment case for DELL [19]

Core Insights - Applied Digital (APLD) shares have appreciated 122.2% year to date (YTD), significantly outperforming the broader Zacks Finance sector's return of 12.1% and the Zacks Financial – Miscellaneous Services industry's return of 3.8% [1] - APLD's strong performance is attributed to robust demand for data center infrastructure and a growing focus on energy efficiency within the data center industry [2] - The global AI market is projected to reach $500 billion by 2027, necessitating high-capacity data centers to support AI applications [2] Company Performance - APLD operates data center hosting services with a total capacity of approximately 286 megawatts (MWs) [7] - The Polaris Forge 1 facility is designed to scale up to 1 gigawatt (GW) and is expected to drive long-term growth, with the first 100-MW facility operational by Q4 2025 [9] - APLD has secured lease agreements with CoreWeave for 400 MW, with anticipated lease revenues of approximately $11 billion [11] Industry Trends - Strong spending by hyperscalers is expected to exceed $350 billion by 2025, which is beneficial for APLD as they require high-capacity data centers [3] - The demand for AI infrastructure is increasing, with AI queries requiring significantly more electricity than traditional queries, presenting a growth opportunity for APLD [10] Financial Outlook - APLD reported fiscal 2025 revenues of $144.2 million, a 6% increase from fiscal 2024, primarily driven by Data Center Hosting [12] - The Zacks Consensus Estimate for APLD's fiscal 2026 loss has widened to 34 cents per share, indicating a challenging near-term outlook [13] - APLD's stock is currently considered overvalued, trading at a forward price/sales ratio of 14.46X compared to the industry average of 3.58X [15] Investment Considerations - The CoreWeave lease deal enhances revenue visibility, which is favorable for long-term investors, but rising loss estimates and high valuation present risks [18] - APLD currently holds a Zacks Rank 3 (Hold), suggesting that investors may want to wait for a more favorable time to accumulate the stock [19]

Group 1 - Applied Digital Corp. (NASDAQ:APLD) experienced a significant increase of 11.71% on Wednesday, closing at $16.98, driven by positive investor sentiment towards the artificial intelligence industry [1][3] - The company is benefiting from a broader trend where investors are investing in digital infrastructure, particularly after Nebius Group secured an $18 billion cloud computing deal with Microsoft, highlighting the demand for scalable computing power [2] - An expanded lease agreement with CoreWeave could potentially generate up to $11 billion in revenues for Applied Digital, covering 400 MW of critical IT capacity across three long-term leases at its Polaris Forge 1 Campus in North Dakota [3][4] Group 2 - The CEO of Applied Digital emphasized the company's commitment to developing AI infrastructure in North Dakota, positioning the state as a strategic hub for the digital economy and AI advancements [5] - The overall optimism in the AI sector suggests that investing in companies like Applied Digital could provide early exposure to a rapidly growing industry [3]

Group 1 - Applied Digital Corporation (NASDAQ:APLD) has finalized a new lease agreement with CoreWeave for an additional 150MW of data center capacity at its Polaris Forge 1 Campus in Ellendale [1] - The new lease increases the total contracted lease revenue for the company to approximately $11 billion, which includes $7 billion from two earlier leases signed in May 2025 [2] - The Polaris Forge 1 Campus will now have a total IT capacity of 400MW across three long-term lease agreements with CoreWeave, with the additional 150MW expected to be ready for service by 2027 [2] Group 2 - Following the announcement, Robert Brown from Lake Street maintained a Buy rating on Applied Digital Corporation with a price target of $18, reflecting around 44% upside from current levels [3] - Applied Digital Corporation is recognized as a technology company that designs, develops, and operates next-generation digital infrastructure and cloud services across North America [3]