Why AI Stock Applied Digital Stock Surged More Than 10% Higher Today

Core Viewpoint - Applied Digital's stock price surged over 10% following a bullish coverage initiation by an analyst, despite the S&P 500 index remaining flat during the trading session [1]. Group 1: Analyst Recommendation - Citizens JMP's Greg Miller initiated coverage of Applied Digital with a market outperform (buy) recommendation and set a price target of $12 per share [2]. - The price target represents a potential upside of over 60% from the stock's recent closing level [4]. Group 2: Company Transformation - Miller believes that Applied Digital's shift from Bitcoin mining infrastructure to data center focus is a strategic move that will yield benefits soon, with expectations of signing a hyperscaler client shortly [5]. - The transition to data center infrastructure is seen as advantageous, particularly due to the increasing demand for facilities that support the higher resource needs of artificial intelligence functionalities [6].