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]

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]

Core Viewpoint - Applied Digital Corporation has successfully completed a private offering of $450 million in 2.75% Convertible Senior Notes due 2030, which includes an additional $75 million exercised by initial purchasers [1][3] Group 1: Offering Details - The offering was made to qualified institutional buyers under Rule 144A of the Securities Act of 1933 [1] - The net proceeds from the sale of the Convertible Notes were approximately $434.5 million after deducting discounts, commissions, and estimated offering expenses [3] - The company plans to use approximately $84 million of the net proceeds for share repurchases, including $52.7 million for prepaid forward repurchase costs and $31.3 million for common stock repurchases [3] Group 2: Capped Call Transactions - In conjunction with the issuance of the Convertible Notes, the company entered into capped call transactions with a cap price of $14.72, representing a 100% premium over the last reported sale price [2] - The overall transaction is expected to have potential net dilution implications, which are illustrated in a provided table [2] Group 3: Company Overview - Applied Digital develops, builds, and operates next-generation data centers and cloud infrastructure, focusing on high-performance computing applications [4] - The company's facilities are designed to support AI, machine learning, blockchain, and HPC workloads, backed by deep hyperscale expertise [4]

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]

Core Viewpoint - Applied Digital Corporation plans to offer $300 million in convertible senior notes due 2030, subject to market conditions, to qualified institutional buyers under Rule 144A of the Securities Act [1][13]. Group 1: Offering Details - The company may grant initial purchasers an option to buy an additional $45 million in convertible notes within 13 days of the initial issuance [2]. - The convertible notes will be senior unsecured obligations, accruing interest payable semi-annually starting June 1, 2025, and maturing on June 1, 2030 [4]. - The notes will be convertible into cash, shares of common stock, or a combination, with specific terms to be determined at pricing [5]. Group 2: Use of Proceeds - A portion of the net proceeds will fund capped call transactions, and the company plans to repurchase up to one-third of the final aggregate principal amount of the convertible notes [3]. - Remaining proceeds will be used for general corporate purposes, with additional proceeds from any exercised options also allocated for capped call transactions [3]. Group 3: Market Impact and Hedging - The company expects to enter into a prepaid forward stock purchase transaction to facilitate derivative transactions, which may influence the market price of the common stock [6][7]. - Activities related to the prepaid forward and capped call transactions could lead to fluctuations in the market price of the common stock and the convertible notes [11][12]. Group 4: Company Overview - Applied Digital develops and operates next-generation data centers and cloud infrastructure, focusing on high-performance computing applications [15].