Core Insights - Applied Digital Corporation (APLD) shares have increased by 47.9% over the past six months, significantly outperforming the broader Finance sector's return of 15.6% and the Zacks Financial Miscellaneous Services industry's appreciation of 3.9% [1] Financial Performance - In the first quarter of fiscal 2025, APLD's revenues surged by 67% year over year to $60.7 million, primarily driven by strong contributions from Cloud Services contracts [2] - The Data Center hosting segment generated $34.8 million in revenues, while the Cloud Services segment contributed $25.9 million [2] - The Zacks Consensus Estimate for fiscal 2025 revenues is projected at $270.77 million, indicating a year-over-year growth of 63.54% [11] - The consensus estimate for second-quarter fiscal 2025 revenues is pegged at $63.65 million, reflecting a year-over-year growth of 50.83% [29] Industry Trends - The growing complexity and power requirements of AI models are leading to increased energy consumption, with data centers' electricity consumption expected to grow by 125% by 2030, accounting for 9% of all electricity used in the United States [3] - APLD's access to hundreds of megawatts of affordable energy and its capability to construct high-quality AI data centers are enhancing its growth prospects [3] Operational Developments - APLD is finalizing a lease agreement with a U.S.-based hyperscaler for its 100 MW facility at the Ellendale HPC campus, which is currently under construction [5] - The company has successfully energized its on-site main substation transformer in the Ellendale HPC center [6] - APLD plans to accelerate the monetization of its more than 1.4 gigawatt pipeline and expects to deploy additional clusters in the second half of fiscal 2025 [7] - The company has added two additional clusters to its Cloud Services Business, increasing the total to six clusters, each containing 1,024 GPUs [16] Partnerships and Collaborations - APLD has partnered with Hewlett Packard, which provides powerful and energy-efficient supercomputers to support large-scale AI through APLD's cloud service [8] - The company has supply agreements with Dell for the delivery of AI and GPU servers [8] - APLD has a diverse partner base that includes NVIDIA, Super Micro Computer, Hewlett Packard, and Dell Technologies [20] Financial Position - APLD's liquidity position has improved, ending the first quarter of fiscal 2025 with $86.6 million in cash, cash equivalents, and restricted cash, compared to $31.7 million at the end of fiscal 2024 [10] - The company entered into definitive agreements for a $160 million private placement with institutional and accredited investors, including NVIDIA [9] - APLD's debt increased to $143.6 million compared to $125.4 million at the end of fiscal 2024 [10] Valuation Metrics - APLD is currently trading at a forward 12-month Price/Sales (P/S) ratio of 5.08X, which is higher than its median of 2.34X and the industry's 2.63X [12] - The company's valuation is considered stretched, with a Value Score of F indicating potential concerns for investors [25]

Core Viewpoint - Applied Digital Corporation will host a conference call on January 14, 2025, to discuss its operations and financial results for the fiscal second quarter ended November 30, 2024 [1][2]. Group 1: Conference Call Details - The conference call is scheduled for January 14, 2025, at 5:00 p.m. Eastern Time [1][2]. - Participants can join the call by dialing 1-877-407-0792 or 1-201-689-8263, with Conference ID 13750721 [2]. - A replay of the call will be available from 8:00 p.m. Eastern Time on January 14, 2025, until January 28, 2025 [3]. Group 2: Company Overview - Applied Digital develops, builds, and operates next-generation data centers and cloud infrastructure [4]. - The company focuses on high-performance computing (HPC) applications, providing secure, scalable, and sustainable digital hosting solutions [4]. - Applied Digital aims to support AI Factories and high-performance computing workloads, leveraging its expertise and robust power pipeline [4].

Core Insights - Applied Digital Corporation has achieved a significant milestone with the energization of its main substation transformer at the HPC data center in Ellendale, North Dakota, marking progress towards operational readiness for AI and high-performance computing applications [1][2][3] Company Developments - The energization event was attended by key partners, including representatives from Montana-Dakota Utilities and the local community, highlighting the collaborative effort in the project's development [2] - Todd Gale, Chief Development Officer, emphasized the importance of this milestone in showcasing technological innovation and strengthening partnerships with the local community [3] - The company has submitted a petition for annexation of its property to the City of Ellendale, which is expected to enhance revenue streams and municipal services for the community [3] Community Engagement - The partnership between Applied Digital and the City of Ellendale was recognized with the Community Impact award at the 18th Annual Data Center Dynamics Awards, reflecting the company's commitment to the local community [4] Company Overview - Applied Digital specializes in developing, building, and operating next-generation data centers and cloud infrastructure, focusing on high-performance computing and AI applications [5] - The company aims to support demanding workloads in AI, machine learning, blockchain, and HPC through its purpose-built facilities [5]

Core Insights - The post-election market shift has led to increased interest in small-cap technology stocks, with the Russell 2000 index gaining 7.8% compared to 4.4% for the S&P 500, indicating a rotation away from large-cap dominance [1][2] Small-Cap Technology Opportunities - The rotation towards small-cap stocks is timely for innovative technology companies that were previously overlooked during the AI boom, as many small-caps are now presenting attractive entry points after facing high interest rates and competitive pressures [2] Company-Specific Developments - **Rigetti Computing**: A quantum computing pioneer, Rigetti plans to deploy a 36-qubit system by mid-2025 and a 100-plus-qubit system later that year. The company has a modest revenue of $2.4 million in Q3 2024 but holds $92.6 million in cash, allowing it to execute its development plans. The stock has increased by 209% from January 1 to November 30, 2024, yet remains undervalued relative to the projected quantum computing market opportunity of $45 billion to $131 billion by 2040 [4][6] - **Applied Digital Corporation**: This company is transitioning from a crypto infrastructure provider to a leading AI computing platform, with fiscal Q1 2025 revenue surging 67% year over year to $60.7 million. A $160 million strategic investment from Nvidia validates its technology approach. The company is expanding its AI infrastructure with plans for a new 100-megawatt facility, aiming to increase total capacity to 400 megawatts. The stock has gained 49.8% from January 1 to November 30, 2024 [7][9][10] - **Wolfspeed**: This company is undergoing a transformation to become the first pure-play 200-millimeter silicon carbide manufacturer, expected to yield $200 million in annual cash savings. Wolfspeed has secured preliminary approval for $750 million in CHIPS Act funding and an additional $750 million from lenders, providing essential capital for U.S. manufacturing expansion. Recent insider buying has added confidence to its turnaround story [11][12][13] Market Dynamics - Current market dynamics present a unique opportunity for small-cap technology innovators, combining transformative technology with specific catalysts for significant value creation. These stocks offer exposure to quantum computing, AI infrastructure, and next-generation semiconductors at attractive valuations [14][15]

Core Viewpoint - Nvidia is experiencing tremendous demand for its GPUs across various sectors, leading to significant excess revenue, which the company is strategically investing to enhance product adoption [1] Group 1: Nvidia's Investments - Nvidia's third-quarter 13F filing revealed it holds 1.7 million shares of SoundHound AI valued at $8 million and a new position in Applied Digital worth $63 million [2] - Both SoundHound AI and Applied Digital have a symbiotic relationship with Nvidia, enhancing its market presence [2] Group 2: SoundHound AI - SoundHound AI has a market cap of approximately $2.3 billion and its stock price has nearly tripled over the last 12 months [4] - The company reported a revenue growth of 89% year over year in Q3, partly due to the acquisition of Amelia, expanding its technology into new markets [5] - SoundHound is collaborating with Nvidia to provide voice AI assistance and is gaining traction in the electric car market, with Stellantis utilizing its technology [6] - The company reported an adjusted net loss of $15 million in Q3 but aims for profitable growth by the end of 2025 [7] Group 3: Applied Digital - Applied Digital has a market cap of around $1.8 billion and its stock has increased by 112% over the past year [9] - The company builds data centers for AI, cloud services, and cryptocurrency mining, with a revenue growth of 67% year over year last quarter [10] - Despite reporting an adjusted net loss of $4 million, Nvidia's investment is crucial for Applied Digital's growth, enabling it to finance high-return projects [11] - Applied Digital is finalizing a lease for a 369,000-square-foot facility designed for AI workloads [12] - The cloud service segment generated nearly half of the company's revenue last quarter, indicating strong growth potential [13] - The company reported a profit of $20 million on an adjusted EBITDA basis, with a reasonable enterprise value-to-EBITDA ratio of 21, suggesting potential for excellent returns [14]

Core Viewpoint - The stock market remains bullish, with a focus on earnings growth and potential tax benefits under a second Trump term, while the CNN Fear and Greed Index indicates a neutral market condition [2]. Group 1: Market Overview - Wall Street bulls are maintaining their position at the Nasdaq's 21-day moving average, with significant earnings reports expected from major companies like Nvidia, Walmart, and Target [1]. - The market sentiment is currently neutral, down from a state of greed, suggesting it is not overheated as it approaches the end of November and the final month of 2024 [2]. Group 2: Investment Opportunities - Investors are encouraged to explore cheap stocks trading at $10 or less, with a focus on those with strong earnings outlooks and favorable analyst ratings [3][7]. - The criteria for selecting these stocks include a price cap of $10, a minimum trading volume of 1 million shares, and a Zacks Rank of 2 or better [8]. Group 3: Applied Digital Corporation - Applied Digital Corporation (APLD) is highlighted as a promising investment, having exceeded Q1 FY25 earnings estimates and is in the process of finalizing a lease for a 100 MW facility designed for high-performance computing applications [9][10]. - APLD's revenue is projected to grow by 64% in FY25 and 42% in the following year, bolstered by a strategic investment from Nvidia, which holds a 3% stake in the company [12]. - Despite a 105% increase in stock price over the last 12 months, APLD remains 65% below its November 2021 levels, indicating potential for further growth [13].

Group 1 - Applied Digital is developing infrastructure specifically for the artificial intelligence market [1] - Nvidia has made an investment in Applied Digital, indicating confidence in the company's potential [1] - The video discusses recent updates that may impact Applied Digital's operations and market position [1] Group 2 - Stock prices referenced are from the after-market on November 15, 2024, with the video published on November 16, 2024 [2]

Group 1: AST SpaceMobile, Inc. (ASTS) - AST SpaceMobile is a space-based cellular broadband network provider with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings increased by 5.8% over the last 60 days [1] - Shares of AST SpaceMobile gained 565.0% over the last six months, outperforming the S&P 500's advance of 12.2% [1] - The company has a Momentum Score of A [1] Group 2: Applied Digital Corporation (APLD) - Applied Digital is a digital infrastructure and cloud solutions provider with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings increased by 64.3% over the last 60 days [2] - Shares of Applied Digital gained 71.1% over the last three months, compared to the S&P 500's advance of 7.0% [2] - The company has a Momentum Score of B [2] Group 3: P10, Inc. (PX) - P10 is a multi-asset class private market solutions provider with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings increased by 4.7% over the last 60 days [3] - Shares of P10 gained 19.3% over the last three months, compared to the S&P 500's advance of 7.0% [3] - The company has a Momentum Score of B [3]

Group 1 - Federated Hermes, Inc. (FHI) has seen a 12.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Raymond James Financial, Inc. (RJF) has experienced a 5.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - AST SpaceMobile, Inc. (ASTS) has also seen a 5.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Applied Digital Corporation (APLD) has had a significant increase of 64.3% in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Spero Therapeutics, Inc. (SPRO) has experienced a 13.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Core Insights - Shares of Applied Digital surged over 4% in extended trading after Nvidia reported a stake in the company [2] - Nvidia held approximately 7.7 million shares of Applied Digital, representing a roughly 3% stake as of September 30 [2] - Applied Digital specializes in advanced digital infrastructure to support high-performance computing and artificial intelligence applications [2] Financial Performance - In its fiscal first quarter ended August 31, Applied Digital reported a revenue growth of 67% year-over-year [3] - The company secured a $160 million investment from institutional and accredited investors [3] Upcoming Events - Nvidia is scheduled to report its third-quarter results on November 20 [3]