Applied Digital Is The Latest AI Infrastructure Stock To Catch Fire

Core Insights - Applied Digital reported a significant revenue increase of 84% year over year, reaching $64.2 million, surpassing analyst expectations of $50 million [1][2] - The company experienced an adjusted loss of 3 cents per share, which was better than the anticipated 13-cent loss by analysts [2] - The stock price surged over 31% to $38.47, with a year-to-date increase of 283%, and it holds a top IBD Relative Strength Rating of 99 [3] Company Overview - Applied Digital initially served cryptocurrency mining firms but has shifted focus to data center hosting and AI computing [5] - The company operates a data center campus in Ellendale, N.D., and is developing another campus near Harwood, N.D. [5] - CoreWeave is identified as the primary customer for Applied Digital [5] Market Position and Investment - The CEO highlighted the potential for significant investment in AI deployment, estimating around $350 billion from hyperscalers this year, positioning the company as a key player in the AI infrastructure space [2] - Nvidia holds a 3% stake in Applied Digital, indicating strong industry backing [6] - Analysts from Roth Capital and Northland Capital Markets have raised their price targets for the stock, reflecting positive market sentiment [6][7] Competitive Landscape - Applied Digital is part of a growing sector of AI infrastructure, alongside companies like Iren, Nebius, Vertiv, and WhiteFiber, with larger competitors including Digital Realty and Equinix [4]