DALLAS, March 31, 2025 (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, will host a conference call on Monday, April 14, 2025, at 5:00 p.m. Eastern Time to discuss its operations and financial results for the fiscal third quarter ended February 28, 2025. A press release detailing these results will be issued after the mark ...

Core Viewpoint - Applied Digital Corporation (APLD) has experienced a significant decline in stock price, dropping 23.5% over the past three months, contrasting with a 4% growth in the broader Finance sector. Despite this short-term struggle, the long-term growth potential for APLD remains strong, suggesting that holding the stock may be beneficial for investors [1][4][18]. Group 1: Reasons for Decline - The recent decline in APLD's stock price is attributed to broader market weaknesses rather than company-specific issues, particularly following the release of a competitive AI model by Chinese startup DeepSeek that requires less powerful hardware [4][5]. - A widespread sell-off in tech stocks in February, driven by fears of escalating trade tensions and slowing economic growth, has also impacted APLD, leading to valuation corrections for companies benefiting from the AI boom [6]. Group 2: Valuation and Financial Performance - APLD is currently trading at a premium, indicated by a Value Score of F, and maintains a high forward 12-month price-to-earnings (P/S) ratio compared to the industry, despite the recent stock price drop [7]. - The data center segment, which provides services primarily for crypto mining, accounted for 83% of APLD's total revenues in fiscal 2024. The company is benefiting from a surge in Bitcoin prices, which increased over 23% in the past year [9][10]. - The Zacks Consensus Estimate for APLD's fiscal 2025 revenues is projected at $526.57 million, reflecting a year-over-year growth of 111.2%, with earnings estimated at 64 cents per share, indicating a growth of 181% [12]. Group 3: Strategic Developments - APLD is nearing completion of a lease agreement for a 100 MW facility at the Ellendale HPC campus, which is designed for high-performance computing applications, including AI. The company is also expanding its capacity to 400 MW with additional buildings [11]. - APLD has established partnerships with major companies such as Super Micro Computer, Hewlett Packard Enterprise, and NVIDIA, enhancing its capabilities in high-performance server and storage solutions for AI applications [15][16][17].

Core Insights - The first quarter of 2025 has presented significant challenges for technology investors, with the S&P 500 facing struggles due to trade tensions and economic policy shifts, leading to dramatic market valuation compressions for innovative companies [1] - Current market conditions have created a rare buying opportunity across various emerging technology subsectors, with transformative companies trading at steep discounts to their potential future values [2] - For investors looking beyond current volatility, three diverse technology disruptors present compelling opportunities for portfolio positioning in the upcoming technological revolution [3] Company Insights Applied Digital - Applied Digital is at the forefront of a critical shift in artificial intelligence (AI) with a focus on power-efficient data infrastructure, despite an 8% year-to-date decline [4] - Morgan Stanley projects a potential 36GW power shortfall for U.S. data centers by 2028, positioning Applied Digital to capitalize on this emerging challenge [4] - The company has secured strategic investments from Nvidia and a $5 billion financing facility from Macquarie Asset Management, although it carries a substantial debt load of $479.6 million and ongoing net losses despite robust revenue growth [5] - The investment narrative for Applied Digital centers on infrastructure emerging as a strategic asset, potentially rivaling AI software in driving the next phase of computing innovation [6] Joby Aviation - Joby Aviation is emerging as a leader in electric urban air mobility, with its stock down 23% year to date, reflecting broader market struggles and industry volatility [8] - The company's air taxis can carry a pilot and four passengers at speeds up to 200 mph, significantly reducing travel times, and it is expanding its market presence through alliances with Virgin Atlantic and Delta Air Lines [9] - Joby plans to carry its first commercial passengers by late 2025 or early 2026, backed by over $933 million in cash reserves and a $500 million commitment from Toyota [10] - Success for Joby hinges on navigating complex FAA certification processes and establishing new regulatory frameworks for urban air mobility operations, which could impact commercialization timelines and costs [11] Poet Technologies - Poet Technologies has seen a 35% decline in shares year to date, presenting a compelling entry point for investors focused on optical infrastructure for AI networks [12] - The company's Optical Interposer platform integrates electronic and photonic components onto single chips, producing high-speed optical engines essential for next-generation data centers [12] - With AI development accelerating, TrendForce projects optical transceiver demand to grow at a 56.5% annual rate, positioning Poet to capitalize on this expansion through partnerships with industry leaders [13] - The company has strengthened its financial position with over $110 million in recent funding and is expanding manufacturing capabilities in Malaysia to meet anticipated demand [13] - Poet's future success depends on flawless manufacturing execution and widespread adoption among hyperscale data centers expanding their AI infrastructure [14]

Applied Digital (APLD 11.13%) stock recorded a day of strong gains in trading Wednesday. The data center specialist's share price closed out the daily session up 11.1%. Meanwhile, the S&P 500 index ended the day up 1.1%, and the Nasdaq Composite index ended the session up 1.4%.Applied Digital's valuation rose today amid news about Microsoft and Meta Platform's big pushes in agentic artificial intelligence (AI) solutions. The company's share price also got a boost from a significant adjustment to tariff poli ...

Applied Digital, AppLovin, and Reddit have plenty of upside potential.Many investors might be wary of buying the hottest growth stocks as the market hovers just a few percentage points below its all-time highs. The threats of higher tariffs, rising inflation, and elevated interest rates could also cap their near-term gains.But if we dig a bit deeper, we'll notice plenty of high-growth stocks still trading at reasonable valuations. I believe these three stocks -- Applied Digital (APLD 0.58%), AppLovin (APP - ...

Core Insights - Applied Digital's stock experienced a significant decline of 24.3% in a week, reflecting broader bearish trends in the AI sector and macroeconomic concerns [1][2][5] Company Performance - The company's share price fell sharply following Nvidia's earnings report, which led to a sell-off in AI stocks despite Nvidia's strong quarterly results [1][5] - Applied Digital is closely tied to Nvidia, as it is one of the few companies in which Nvidia has direct investments, resulting in correlated stock movements [4] Macroeconomic Factors - Recent indicators of inflation and macroeconomic health have been worse than expected, contributing to investor anxiety and selling pressure on AI stocks [2] - The Trump administration's plans to introduce new tariffs on Canada and Mexico, along with potential export restrictions on AI chips to China, have raised concerns about increased hardware costs for Applied Digital [3]

Core Viewpoint - Applied Digital's stock is experiencing significant sell-off pressure, primarily due to broader market concerns regarding growth-dependent AI stocks and macroeconomic risks [1][2]. Group 1: Stock Performance - Applied Digital's share price fell by 10.8% as of 3 p.m. ET, having previously dropped as much as 18% during the trading session [1]. - The stock has declined over 10% in the last month, with a current market capitalization of approximately $1.8 billion, translating to a valuation of about 7 times this year's expected sales [5]. Group 2: Market Sentiment and Influences - Traders are selling off AI stocks as they focus on emerging macroeconomic risks, leading to a weakening bullish sentiment ahead of Nvidia's fourth-quarter report [2]. - Concerns are heightened by the Trump administration's plans to impose new tariffs on Canada and Mexico, which may exacerbate inflation fears and impact the tech sector [3]. Group 3: Nvidia's Impact - Nvidia's upcoming earnings report is critical for Applied Digital, as it is a significant investor in the company and a bellwether for the data center market and AI demand [4]. - There are worries that Nvidia may provide softer-than-expected guidance, particularly in light of reports suggesting Microsoft might be moderating its data center expansion strategy [6]. Group 4: Growth Metrics - Despite the recent pullback, Applied Digital's stock is still up by 99% over the past year, with a year-over-year sales growth of 51% reported last quarter, indicating a potential valuation premium [5][6].

Core Viewpoint - Applied Digital's stock experienced a significant decline of 15.3% amid broader market movements and specific concerns regarding the AI sector and data center spending [1][2][4]. Group 1: Stock Performance - Applied Digital's share price fell by 15.3% during Monday's trading session, contrasting with the S&P 500's decline of 0.5% and the Nasdaq Composite's drop of 1.2% [1]. - The stock faced substantial sell-offs as investors reduced their positions in AI stocks ahead of Nvidia's fourth-quarter earnings release [2][3]. Group 2: Market Influences - Concerns about Nvidia's upcoming earnings report and Microsoft's potential cutbacks in data center spending contributed to the stock's decline [2][4]. - Microsoft CEO Satya Nadella expressed skepticism about the actual value generated by AI compared to the hype, which further pressured Applied Digital's stock [4]. Group 3: Future Outlook - The upcoming Nvidia earnings report is expected to significantly influence Applied Digital's stock valuation, with potential for large movements depending on Nvidia's guidance [5][6]. - If Nvidia's guidance exceeds expectations, Applied Digital's shares could rise sharply; however, there is considerable downside risk if the outlook falls short of Wall Street forecasts [6].

Core Insights - Applied Digital's stock has experienced significant gains, with a rise of 12.7% as of 10:15 a.m. ET, peaking at 17.3% earlier in the trading session [1] - Nvidia's recent SEC disclosure revealed that it still holds approximately 7.7 million shares of Applied Digital, indicating strong confidence in the company despite selling off other AI-related investments [2][3] - Applied Digital secured $375 million from Sumitomo Mitsui Banking Corporation for its North Dakota data center, enhancing its capacity for AI computation services [5] - The company reported a non-GAAP loss per share of $0.06 and revenue of $63.87 million, reflecting a year-over-year increase of about 51%, outperforming Wall Street expectations [6] Company Developments - Nvidia's decision to maintain its investment in Applied Digital, while divesting from other AI holdings, suggests a belief in the company's superior prospects [4] - The funding for the North Dakota data center is a strategic move to expand Applied Digital's data center footprint and improve service offerings [5] - The strong revenue growth and continued support from Nvidia position Applied Digital favorably for future opportunities [6]

Core Viewpoint - Applied Digital Corporation has successfully closed a $375 million financing deal with SMBC to support the development of its Ellendale High Performance Computing (HPC) Campus and to repay existing obligations [1][2][7] Financing Details - The financing amount is $375 million, which will be used to repay obligations under a senior secured note and to advance the development of the first and second data center buildings at the Ellendale HPC Campus [1][2] - The company plans to replace the interim SMBC loan with permanent project financing, which is not expected to be dilutive to the company's common stock [2] Strategic Partnerships - The partnership with SMBC is seen as a validation of the Ellendale HPC Campus and is expected to strengthen as the company scales its HPC data center platform [2][7] - Northland Capital Markets acted as the Capital Markets Advisor for the financing, while Milbank LLP and Lowenstein Sandler LLP provided legal counsel to the company [3] Company Overview - Applied Digital specializes in developing, building, and operating next-generation data centers and cloud infrastructure, focusing on high-performance computing (HPC) applications [4] - The company’s facilities are designed to support AI, machine learning, blockchain, and other demanding workloads, leveraging its expertise in hyperscale operations [4]