Core Viewpoint - Applied Digital Corp. (NASDAQ:APLD) experienced significant selling pressure, dropping 7.56% to close at $26.41 after announcing a $787.5 million funding secured from Macquarie Asset Management [1][5]. Funding and Financial Details - The $787.5 million is part of a larger $5 billion perpetual preferred equity financing facility aimed at supporting the development of Polaris Forge 1 and 2 data centers in North Dakota [2]. - Of the total funding, $450 million is designated for the completion of Forge 2, which has a capacity to power 1 GW of critical IT load, with 200 MW already leased to a US-based Investment Grade Hyperscaler [3]. - The remaining funds will be allocated for Forge 1 [3]. - Additionally, Applied Digital entered into a loan agreement with First National Bank of Omaha for up to $65 million in revolving loans and letters of credit, carrying an interest rate of 2.75% per annum, secured by all of the company's assets [4][5].

Core Viewpoint - Macquarie Asset Management is expected to provide $787.5 million in additional equity funding to accelerate the buildout of Applied Digital's AI Factory campuses in North Dakota, as part of a larger financing facility of up to $5.0 billion [1][2]. Funding Allocation - Of the $787.5 million, $450 million will be allocated to complete the build-out of Polaris Forge 2 in Harwood, North Dakota, which has leased 200 MW of critical IT capacity to a U.S.-Based Investment Grade Hyperscaler [3]. - The remaining $337.5 million will be directed to Polaris Forge 1 in Ellendale, North Dakota, contingent upon the closing of a $2.35 billion senior secured notes offering [4]. Strategic Importance - This funding is seen as a reinforcement of Applied Digital's AI infrastructure strategy and reflects confidence in the company's ability to deliver at scale [5]. - The company has achieved its first Ready-for-Service milestone for the first data hall at Polaris Forge 1, with both campuses remaining on schedule [5]. Partnership and Support - Macquarie Asset Management's ongoing support is viewed as crucial for Applied Digital's growth, positioning the company to become an industry leader in data center platforms [5]. - The partnership is expected to enhance the company's financing model and execution strategy, enabling further development of large-scale AI Factories [5]. Additional Financing - On November 10, 2025, the company entered into a loan agreement with First National Bank of Omaha for up to $65 million, secured by the company's assets [6].

Core Viewpoint - Applied Digital Corporation's subsidiary, APLD ComputeCo LLC, plans to offer $2.35 billion in senior secured notes due 2030 to fund data center construction and repay existing debt [1][2]. Group 1: Offering Details - APLD Compute intends to offer $2.35 billion in senior secured notes in a private offering to qualified institutional buyers under Rule 144A of the Securities Act [1]. - The net proceeds will be used for the construction of 100 MW and 150 MW data centers, ELN-02 and ELN-03, at the Polaris Forge 1 campus in North Dakota [2]. - The offering is subject to market conditions, and there is no assurance regarding its completion [4]. Group 2: Security and Guarantees - The notes will be fully guaranteed by APLD Compute's existing and future subsidiaries, which include several HoldCo and LandCo entities [3]. - The notes and guarantees will be secured by first-priority liens on substantially all assets of APLD Compute and its subsidiaries, excluding certain properties [3]. Group 3: Company Overview - Applied Digital Corporation specializes in designing, building, and operating high-performance data centers for AI, cloud, networking, and blockchain workloads [7]. - The company has been recognized as the Best Data Center in the Americas for 2025 by Datacloud [7].

Core Viewpoint - Applied Digital's stock is experiencing significant volatility, influenced by broader market trends and concerns over AI stock valuations [1][4][6]. Company Performance - Applied Digital reported revenue of $64.2 million, reflecting an 84% growth compared to the same quarter last year [5]. - The company's net loss has improved significantly compared to the previous year [5]. Market Sentiment - There is a growing bearish sentiment regarding AI stocks, with concerns that they may be overvalued [4][6]. - A recent University of Michigan report indicated that U.S. consumer confidence has dropped to its lowest level since 2022, contributing to negative market sentiment [4][6]. Stock Movement - The stock price of Applied Digital was down 0.3% during trading, having previously fallen as much as 9.9% [1][4]. - Despite recent pullbacks, the stock has surged 305% in 2023, but ongoing bearish sentiment could lead to further valuation contraction [7].

Core Insights - Vertiv (VRT) and Applied Digital (APLD) are significant players in the data center infrastructure market, with Vertiv focusing on thermal and power management systems, while Applied Digital specializes in high-performance data centers optimized for AI and high computing workloads [1][2] Market Overview - The data center infrastructure management market was valued at approximately $3.06 billion in 2024 and is projected to grow at a CAGR of 17.3% from 2025 to 2030, presenting substantial growth opportunities for both Vertiv and Applied Digital [2] Vertiv (VRT) Analysis - VRT's product portfolio includes thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions, with organic orders increasing by about 21% and a book-to-bill ratio of 1.4 times in Q3 2025, indicating strong growth prospects [3][4] - The backlog for VRT grew 12% sequentially and 30% year-over-year to $9.5 billion, driven by the rapid adoption of AI and the need for data centers to support digital transformation [3][5] - VRT's recent acquisition of Purge Rite Intermediate for approximately $1.0 billion aims to enhance its liquid-cooling and thermal-management services for AI and high-performance data centers [4] - In the Americas, VRT's organic sales surged 43% in Q3 2025, while APAC saw a 21% increase, highlighting strong demand driven by AI adoption [5] Applied Digital (APLD) Analysis - APLD is experiencing robust demand for data center infrastructure, particularly with a focus on energy efficiency [6] - The partnership with CoreWeave, initially contracted for 250 megawatts and later expanded to 400 megawatts, represents a total contract value of $11 billion over 15 years, providing strong revenue visibility [7][9] - APLD's ability to shorten construction timelines from 24 months to 12-14 months enhances its capacity to meet urgent demands from hyperscalers, who are expected to invest over $350 billion in AI infrastructure in 2025 [8][9] Stock Performance and Valuation - Year-to-date, Vertiv's shares have increased by 61.1%, while Applied Digital's shares have surged by 306.8%, attributed to strong demand and strategic partnerships [10] - Both companies are currently considered overvalued, with Vertiv trading at a trailing Price/Book ratio of 19.94X compared to Applied Digital's 8.15X [12] - The Zacks Consensus Estimate for Vertiv's 2025 earnings is $4.11 per share, reflecting a 7.31% increase over the past 30 days, while APLD is projected to report a loss of 31 cents per share [14][16] Earnings Performance - Vertiv has consistently beaten earnings estimates in the trailing four quarters, with an average surprise of 14.89%, while Applied Digital has missed estimates in two of the last four quarters, with a negative average surprise of 104.22% [17] Conclusion - Both Vertiv and Applied Digital are positioned to benefit from the data center infrastructure boom, but Vertiv's stronger earnings momentum and diversified growth drivers suggest it may offer greater upside potential in the near term [18] - Applied Digital faces challenges with rising loss estimates and customer concentration, which may temper its near-term prospects [18][19]

Core Insights - The article highlights Rick's extensive experience in trading stocks and options, emphasizing his status as a Wall Street Journal best-selling author with over 20 years in the industry [1] - Rick's book, "The Financially Independent Millennial," aims to inspire readers by sharing his journey to financial independence at age 35, despite a lack of early financial education [1] Group 1 - Rick's work is recognized by major media outlets such as Good Morning America, Washington Post, and Business Insider, indicating his influence in the financial community [1] - The content produced by Rick is designed to be accessible and easy to understand, reflecting his passion for business [1] - In addition to financial writing, Rick also contributes to a travel blog focused on cruise ship travel, showcasing his diverse interests [1]

Core Viewpoint - Banco BPM reported a higher-than-expected quarterly profit, driven by increased net fees following its acquisition of Anima Holding, which compensated for declining income from other sources [1] Group 1: Financial Performance - The quarterly profit exceeded expectations, indicating strong financial performance [1] - The acquisition of Anima Holding significantly contributed to the increase in net fees, highlighting the strategic benefits of the purchase [1] - The positive impact of the acquisition more than offset the decline in other income streams, showcasing effective management of revenue sources [1]

Core Insights - Applied Digital Corporation (APLD) has undergone a significant strategic transformation, shifting from a cyclical Bitcoin hosting company to an essential player in the AI ecosystem [1] Company Overview - APLD is now positioned as a vital component in the construction of the AI ecosystem, indicating a strategic pivot towards more sustainable and growth-oriented business models [1] Industry Context - The digital infrastructure industry is experiencing a major overhaul, with companies like APLD adapting to the evolving demands of technology and market trends [1]

Core Insights - Babcock & Wilcox (B&W) is expanding into the AI data center market, leveraging its natural gas technologies to meet the increasing power demands, with a pipeline of opportunities exceeding $3 billion [2][4][5] - The company reported a revenue of $149.0 million for Q3 2025, a slight decrease from $152.6 million in Q3 2024, but showed significant improvements in operating income and adjusted EBITDA [2][6] - B&W's backlog reached $393.5 million, marking a 56% increase compared to the same period last year, indicating strong demand for its thermal projects and services [4][5] Financial Performance - Revenue for Q3 2025 was $149.0 million, down from $152.6 million in Q3 2024, primarily due to lower large project volumes [2][6] - Global Parts & Services revenue increased to $68.4 million from $61.7 million in Q3 2024, driven by rising electricity needs from AI and expanding economies [2][6] - The net loss from continuing operations was $2.3 million, an improvement from a loss of $7.9 million in Q3 2024, with loss per share decreasing from $0.13 to $0.06 [2][6] Strategic Developments - B&W signed a limited notice to proceed for a $1.5 billion contract with Applied Digital to deliver one gigawatt of energy for an AI data center project, with full contract release expected in Q1 2026 [2][4] - A strategic partnership with Denham Capital was announced to convert coal plants to natural gas for powering AI data centers across North America and Europe [4][5] - The company anticipates a full-year 2026 adjusted EBITDA target range of $70 million to $85 million, reflecting approximately 80% year-over-year growth from its core business [4][5] Market Position and Outlook - B&W's total global pipeline now exceeds $10 billion, bolstered by the new AI data center project and ongoing demand for thermal energy solutions [3][4][5] - The company is well-positioned to capitalize on the growing demand for baseload generation driven by AI and data centers, with expectations for continued growth in parts and services revenue [5][6] - Recent asset sales, including Diamond Power International for $177 million and Allen-Sherman-Hoff for $29 million, have improved the company's balance sheet and liquidity [5][6]

Core Viewpoint - Babcock & Wilcox (B&W) is entering the AI Data Center power supply market with a project valued at over $1.5 billion to deliver one gigawatt of power for Applied Digital's AI Factory, utilizing efficient steam generation technology for faster deployment compared to traditional power plants [1][3]. Group 1: Project Details - B&W plans to design and install four 300-megawatt natural gas-fired power plants, with operations expected to begin in 2028 [2]. - The project is anticipated to receive a full contract release in the first quarter of 2026 [1]. Group 2: Partnership Insights - Applied Digital's CEO highlighted B&W's advanced boiler and steam turbine technology, which offers efficiency comparable to simple-cycle gas turbines while enabling quicker deployment [3]. - B&W's extensive experience includes over 400 gigawatts of installed generating capacity globally, showcasing its capability in power generation [3]. Group 3: Company Background - Babcock & Wilcox, headquartered in Akron, Ohio, is recognized as a leader in energy and environmental products and services for power and industrial markets worldwide [4].