Is Applied Digital Stock Going to $0?

Group 1: Company Overview - Applied Digital has transitioned from providing infrastructure for crypto miners to focusing on building data centers for artificial intelligence (AI) workloads, resulting in significant growth in its share price [1][2] - The company operates as a specialized real estate developer and landlord, constructing facilities and leasing them to tenants running AI servers [2][3] Group 2: Financial Performance - Revenue has surged from $55 million in 2023 to $264 million over the last four reported quarters, indicating strong growth [4] - Applied Digital has secured commitments for up to $16 billion in revenue over the next 15 years, showcasing its potential for future expansion [4] Group 3: Risks and Challenges - The company is currently operating at a loss, with a reported loss of $125 million over the last 12 months, although there is a path to profitability [5] - Debt levels have increased dramatically from just over $42 million in Q1 2024 to nearly $2.6 billion, with a significant portion financed at an interest rate of 9.25% [6] - Heavy reliance on CoreWeave, its largest customer, poses a risk, as CoreWeave is also unprofitable and heavily indebted, which could impact Applied Digital's future lease income [7]