Shares of Applied Digital Corporation (APLD) have gained 13.1% over the past four weeks to close the last trading session at $7.79, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $10.71 indicates a potential upside of 37.5%.The mean estimate comprises seven short-term price targets with a standard deviation of $1.11. While the lowest estimate of $9 indicates a 15.5% increase fr ...

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 ...

DALLAS, Oct. 31, 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 the upsize and pricing of its offering of $375 million aggregate principal amount of 2.75% Convertible Senior Notes due 2030 (the “Convertible Notes”). The Convertible Notes will be sold in a private offering to persons reasonably believ ...

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. ...

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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 ...

Financial Data and Key Metrics - Revenue increased by 67% to $60.7 million this quarter, driven by cloud services contracts [10] - Data center hosting segment generated $34.8 million in revenue, while cloud services contributed $25.9 million [10] - Depreciation and amortization expenses totaled $34.4 million, up from $8 million in the same period last year [10] - Adjusted EBITDA for the quarter increased significantly to $20 million [11] - Adjusted net loss for the quarter was $21.6 million or $0.15 per basic and diluted share [11] - Cash, cash equivalents, and restricted cash stood at $86.6 million, with $143.6 million in debt and shareholders' equity at $241.8 million [11] Business Line Data and Key Metrics - Data center hosting business has 286 megawatts of capacity across two fully contracted locations in North Dakota, operating at full capacity [8] - Cloud services business has six clusters online, with plans to deploy additional clusters starting in the second half of fiscal year 2025 [9] - Significant progress made on amending lease financing for GPUs, allowing amortization over the expected useful life, improving reported results [9] Market Data and Key Metrics - The company is finalizing a lease with a US-based hyperscaler for the Ellendale HPC campus, with an initial 100-megawatt building and plans to expand to 400 megawatts [7] - Rising demand for proprietary HPC data centers among top-tier industry players, with significant interest from hyperscalers for 2025 and 2026 capacity [14] - The company is exploring opportunities to accelerate the monetization of its over 1.4 gigawatt pipeline [8] Company Strategy and Industry Competition - The company aims to become a platform capable of building and operating multiple HPC data centers at scale [15] - Strategic investments from prominent investors affirm the company's market position and highlight the potential for its strategic plan [15] - The company is positioning itself as a full-stack developer for hyperscalers, leveraging its early investment in the industry [14] Management Commentary on Operating Environment and Future Outlook - The company is encouraged by positive trends across its business and remains confident in its growth trajectory [9] - Management sees significant demand for HPC data centers, with limited capacity available for 2025 and 2026 [14] - The company is making executive team changes to better position itself for expansion and growth [15] Other Important Information - The company incurred $4.1 million in expenses this quarter for facilities not yet generating revenue, with plans to utilize these data centers in the future [11] - The company is exploring heat recirculation solutions for its HPC facilities, with potential applications in agriculture [52] Q&A Session Summary Question: Lease Negotiation Status - The exclusivity period for the lease negotiation has expired, and the company is finalizing the lease document [18] Question: Lease Details for Hyperscaler - The initial lease will be for 100 megawatts, with a reservation on the additional 300 megawatts, expected to be finalized in two separate leases [21] Question: Additional GPU Clusters - The company expects to deploy additional GPU clusters in the second half of fiscal year 2025, with demand influenced by customer preferences for Hopper or Blackwell GPUs [24][25] Question: Demand Environment and Future Data Centers - The company has seen increased interest from hyperscalers for 2025 and 2026 capacity and is working on securing an LOI for a second site, likely in the Dakotas [28][29] Question: Lease Finalization Timeline - The lease finalization is in the clerical phase, with expectations for completion within six to eight weeks [35][36] Question: Economics of Two Leases - The economics of the two leases are expected to be similar, with one structured as a Colo-style lease and the other as a yield on cost model [43][45] Question: Customer Turnover and Pricing in Cloud Services - Pricing for GPU services has remained stable, with customer turnover influenced by market dynamics and enterprise demand [48][50] Question: Heat Recirculation Solutions - The company is exploring heat recirculation solutions for its HPC facilities, with potential applications in agriculture, such as greenhouses or aquafarming [52] Question: Progress on Lease Finalization - The company estimates that 98.5% to 99% of the work on the lease finalization is complete, with the remaining tasks being clerical [55] Question: Yield on Cost and Prepayment for Future Buildings - The company is not disclosing specific yield targets but expects to secure leases and project financing before committing significant CapEx for future buildings [58][59]

Applied Digital Corporation (APLD) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of a loss of $0.28. This compares to loss of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 89.29%. A quarter ago, it was expected that this company would post a loss of $0.23 per share when it actually produced a loss of $0.52, delivering a surprise of -126.09%.Over the last four quarters, the compan ...