Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:Federated Hermes, Inc. (FHI) : This global asset manager has seen the Zacks Consensus Estimate for its current year earnings increasing 12.5% over the last 60 days.Raymond James Financial, Inc. (RJF) : This diversified financial services company has seen the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days.AST SpaceMobile, Inc. (ASTS) : This space-based cellular broadband network provider has ...

Key TakeawaysShares of Applied Digital surged in extended trading Thursday after Nvidia reported a stake in the company.Nvidia held a roughly 3% stake in Applied Digital as of Sept. 30, according to a filing with the Securities and Exchange Commission.Applied Digital is a provider of advanced digital infrastructure, designed to support high-performance computing and artificial intelligence applications. Shares of Applied Digital (APLD) surged over 4% in extended trading Thursday after Nvidia (NVDA) reported ...

Core Viewpoint - Shares of Applied Digital Corporation (APLD) have increased by 13.1% in the past four weeks, closing at $7.79, with a potential upside indicated by Wall Street analysts' price targets suggesting a mean estimate of $10.71, representing a 37.5% increase from the current price [1] Price Targets and Analyst Estimates - The mean estimate consists of seven short-term price targets with a standard deviation of $1.11, where the lowest estimate is $9 (15.5% increase) and the highest is $12 (54% increase) [2] - A low standard deviation indicates a strong agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [7] Earnings Estimates and Analyst Optimism - Analysts show growing optimism about APLD's earnings prospects, as indicated by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [9] - Over the last 30 days, the Zacks Consensus Estimate for the current year has risen by 64.1%, with four estimates moving higher and no negative revisions [10] Zacks Rank and Investment Potential - APLD holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential upside in the near term [11]

DALLAS, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) (“Applied Digital” or the “Company”), a designer, builder, and operator of next-generation digital infrastructure designed for High-Performance Computing applications, today completed its previously announced offering of 2.75% Convertible Senior Notes due 2030 (the “Convertible Notes”) in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of ...

Core Viewpoint - Applied Digital Corporation has announced the pricing and upsize of its offering of $375 million in 2.75% Convertible Senior Notes due 2030, aimed at enhancing its digital infrastructure for High-Performance Computing applications [1] Transaction Details - The offering consists of $375 million in 2.75% Convertible Notes with a 32.5% conversion premium [2] - The initial cap price for capped call transactions is set at $14.72 per share, representing a 100% premium over the closing price of $7.36 on October 30, 2024 [2] - The company plans to repurchase approximately $84 million in shares of common stock as part of the offering [2] - An option for initial purchasers to buy an additional $75 million in Convertible Notes is available within a 13-day period after the initial issuance [2] Use of Proceeds - The estimated net proceeds from the offering are approximately $361.8 million, or $434.5 million if the additional notes option is fully exercised [3] - Approximately $84 million of the net proceeds will be allocated for share repurchases, with $52.7 million for prepaid forward repurchase and $31.3 million for direct share buybacks [3] - Around $43.1 million will be used for capped call transactions, with the remainder for general corporate purposes [3] Convertible Notes Details - The Convertible Notes will accrue interest at 2.75% per annum, payable semi-annually, and will mature on June 1, 2030 [4] - The initial conversion rate is set at 102.5431 shares per $1,000 principal amount, equating to an initial conversion price of approximately $9.75 per share [5] - The company may redeem the Convertible Notes starting December 1, 2027, under specific conditions [6] Share Repurchase Program - The share repurchase program includes a prepaid forward repurchase and concurrent buybacks totaling approximately $84 million [8] - The prepaid forward repurchase involves approximately 7.2 million shares, with the forward counterparty paying equivalent cash dividends to the company [9] - This program is designed to facilitate derivative transactions and hedge positions for investors in the Convertible Notes [9][10] Capped Call Transactions - Capped call transactions have an initial cap price of $14.72 per share, aimed at reducing potential dilution upon conversion of the Convertible Notes [13][14] - The company expects that the option counterparties will engage in purchasing shares and entering derivative transactions, which may influence the market price of the common stock [15]

DALLAS, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or the "Company"), a designer, builder, and operator of next-generation digital infrastructure designed for High-Performance Computing (HPC) applications, today announced that it intends to offer, subject to market conditions and other factors, $300 million aggregate principal amount of convertible senior notes due 2030 (the “Convertible Notes”) in a private offering to persons reasonably believed to be q ...

Applied Digital Corporation (APLD) shares have appreciated 22.7% year to date, outperforming the broader Finance sector's return of 18.4% and the Zacks Financial Miscellaneous Services industry's appreciation of 9.8%. This designer, builder, and operator of next-generation digital infrastructure designed for high-performance computing applications, cloud services, and data center hosting has been benefiting from strong top-line growth. In first-quarter fiscal 2025, revenues jumped 67% year over year to $60. ...

Core Insights - Small-cap companies present significant growth opportunities, often overlooked in favor of larger firms, but they come with higher volatility [1][11] - These companies typically operate in emerging markets, allowing for rapid market share expansion and potential stock price appreciation [2] Company Summaries The Honest Company - Focuses on clean and sustainable personal care products, reporting a 10% revenue growth to $93 million in Q2 2024, with gross margins increasing from 27.1% to 38.3% year over year [3][4] - Achieved three consecutive quarters of positive adjusted EBITDA, prompting management to raise full-year revenue and profitability guidance [4] - Stock price has risen over 222% in the past 12 months, with a current market cap of approximately $378 million, indicating a conservative valuation in the multi-billion-dollar clean consumer products market [5] Poet Technologies - Develops photonic solutions for data communications and AI applications, with stock rising 314% this year due to strategic partnerships and design wins [5][6] - Recently announced collaboration with Mitsubishi Electric for 3.2T optical engines and secured design wins with Foxconn Interconnect Technology and Luxshare Tech [6] - Currently in early commercialization stages with limited revenue and facing intense competition in the optical components market [7] Applied Digital - Builds and operates next-generation digital infrastructure focused on high-performance computing and AI applications, reporting Q1 fiscal 2025 revenues of $60.7 million, a 67% increase from the previous year [8][9] - Validated strategy through a $160 million private placement, including investment from Nvidia, while expanding cloud services and developing a 100-megawatt data center for AI [9] - Faces execution risks and requires significant capital investment to scale operations amid intensifying competition in the high-performance computing sector [10]

AI Industry Overview - Artificial intelligence (AI) is transforming industries and creating massive economic opportunities, with AI spending projected to have a $19.9 trillion global economic impact by 2030 [1] - The AI boom is accelerating, leading investors to seek hidden gems in the AI space beyond the usual suspects [1] Navitas Semiconductor (NVTS) - Navitas Semiconductor is at the forefront of next-generation power solutions critical for energy-efficient AI data centers, utilizing GaN (gallium nitride) and SiC (silicon carbide) power semiconductors [2] - The company's "IntelliWeave" digital control technique enables AI data center power supplies to achieve over 99% efficiency, potentially revolutionizing power consumption in AI applications [2] - Navitas reported Q2 2024 revenue of $20.5 million, a 13% year-over-year increase, with a growing pipeline of over 60 data center customer projects and new products tailored for AI applications [3] Applied Digital (APLD) - Applied Digital is expanding its high-performance computing infrastructure to meet the booming demand for AI processing power, focusing on next-generation data centers optimized for AI and machine learning [4] - The company's cloud services business generated $25.9 million in revenue in the most recent quarter, with two new GPU clusters added [5] - Applied Digital is developing a 100 MW high-performance computing facility in North Dakota, with plans to expand total capacity to 400 MW, and is in the design phase for two additional buildings at the site [5] - The company raised $160 million in a private placement, including investments from Nvidia and Related Companies, and reported a 67% year-over-year revenue increase to $60.7 million in fiscal Q1 2025 [6] Iris Energy (IREN) - Iris Energy is leveraging its Bitcoin mining infrastructure expertise to capitalize on the growing demand for AI computing power, generating $3.1 million in revenue from AI cloud services in fiscal year 2024 [7] - The company is evaluating AI data center opportunities for its 1.4 GW West Texas site, managed by Morgan Stanley [7] - Iris Energy reported improved financial results for fiscal year 2024, with EBITDA of $19.6 million compared to a loss of $123.2 million in the previous year, and Bitcoin mining revenue reaching a record $184.1 million, up from $75.5 million in fiscal year 2023 [8] Summary of AI Companies - Navitas Semiconductor, Applied Digital, and Iris Energy offer unique angles on the AI revolution, with potential to benefit from the ongoing technological transformation [9] - These companies are currently unprofitable and face intense competition, but their success depends on the continued growth and adoption of AI technologies [9]

Applied Digital Corp. NASDAQ: APLD stock has been volatile since it reported earnings after the market closed on October 9. After gaining 4% in after-hours trading, APLD stock moved sharply lower by 12.8% in pre-market trading. However, as of this writing, the stock is up about 6%, but that’s still about 4% below its October 9 closing price.  Applied Digital TodayAPLDApplied Digital$6.89 -0.51 (-6.89%) 52-Week Range$2.36▼$8.78Price Target$9.00Add to WatchlistThat may lead you to believe the company delivere ...