Group 1 - Applied Digital Corporation (NASDAQ:APLD) is expected to have a breakout quarter, making it a stock worth owning despite its current losses [1] - The company designs, builds, and operates data centers that support high-performance computing and AI workloads, which have gained traction among cryptocurrency miners converting their operations [3] - Recent trends show that stocks of converted crypto miners, including Applied Digital, have experienced significant volatility, with declines ranging from 50% to 57% from peak to trough [3] Group 2 - While APLD shows potential as an investment, there are other AI stocks that may offer greater upside potential and lower downside risk [4]

Core Thesis - Core Scientific, Inc. has transitioned from a traditional Bitcoin miner to an emerging AI infrastructure platform, with the market valuing it based on its high-performance computing (HPC) potential rather than its legacy mining fundamentals [1][2] Company Overview - As of February 11th, Core Scientific's share price was $18.09, with trailing and forward P/E ratios of 77.08 and 29.15 respectively [1] - The company operates in Digital Asset Self-Mining, Digital Asset Hosted Mining, and HPC Hosting, utilizing approximately 1,317 MW of contracted power capacity across key U.S. states [1] Strategic Partnerships - Core Scientific's partnership with CoreWeave, a leading AI hyperscaler, positions it as a critical infrastructure provider in the expanding AI data center ecosystem [2] - The rejection of a reported $9 billion acquisition offer from CoreWeave indicates management's confidence in the standalone potential of its AI-focused transformation [2] Financial Performance and Market Sentiment - Recent earnings have shown revenue declines and negative free cash flow as the company pivots away from mining, but investors are focused on long-term value creation through HPC hosting revenue [2] - Analyst sentiment has improved, with multiple upgrades and price targets ranging from the low $20s to over $30, suggesting that successful execution could significantly rerate the stock [3] Technical Indicators - Recent unusual options activity, including aggressive call buying for early 2026 expiries, indicates institutional positioning for further upside [3] - Shares have rebounded sharply from recent lows and are consolidating with improving momentum [3] Future Outlook - If Core Scientific successfully scales its HPC hosting platform and secures additional hyperscale customers, it could unlock substantial recurring cash flows and benefit from sustained AI infrastructure demand, offering significant upside potential [4]

Jim Cramer, the host of Mad Money, said Wednesday that he remains confident many software companies can withstand the threat posed by artificial intelligence. Wall Street can overreact better than anyone. Earlier this week, an outfit called Citrini Research put out a paper titled the “2028 Global Intelligence Crisis” that presented our country as a vast wasteland of white-collar unemployables thrown out of pretty much anywhere they previously worked because of what we talk about all the time, AI. This piece ...

Investment Summary - Nvidia invested approximately $7.93 billion in Intel Corporation (INTC) during the October-to-December quarter of 2025, resulting in a stock price increase from $24.21 to $46.51, a gain of roughly 92% [1] - Nvidia also invested around $1.08 billion in Nokia (NOK), with the stock rising from $4.23 to $7.57, marking a gain of approximately 79% [2] - However, Nvidia's investment in Synopsys Inc. worth about $2.26 billion saw a decline of around 24% since September 2nd [2] Existing Investments Performance - The value of Nvidia's stake in CoreWeave decreased from $3.32 billion to $1.58 billion, a drop of nearly 50% [3] - Nvidia's investment in Nebius fell from $133.65 million to approximately $99.65 million [3] Divestments - Nvidia divested its entire stakes in four firms: Arm Holdings, Applied Digital Corporation, Recursion Pharmaceuticals, and WeRide Inc., with a combined worth of $387.64 million [4]

Aside from being the artificial intelligence (AI) chip king, Nvidia (NASDAQ: NVDA) also has a small investment portfolio. The company tends to invest in key partners, customers, and suppliers and has also invested in compelling AI companies. In some quarters, there is very little movement in Nvidia's portfolio. But in the fourth quarter of calendar year 2025, the company was active. Nvidia dumped its stake in Applied Digital (NASDAQ: APLD) and ARM Holdings (NASDAQ: ARM) while initiating a new position in ...

We came across a bullish thesis on NetApp, Inc. on CompoundingLab’s Substack. In this article, we will summarize the bulls’ thesis on NTAP. NetApp, Inc.'s share was trading at $103.68 as of February 9th. NTAP’s trailing and forward P/E were 18.06 and 12.12 respectively according to Yahoo Finance. Applied Digital (APLD) Jumps 14% on AI Optimism NetApp, Inc. provides a range of enterprise software, systems, and services that customers use to transform their data infrastructures in the United States and int ...

Applied Digital Corporation (APLD) is standing squarely at the epicenter of the artificial intelligence (AI) surge. As a developer and owner of AI-focused data centers, the company is riding the infrastructure wave that powers the boom. In just the past year, the stock delivered a three-digit return, firmly placing it among the year’s standout performers. However, on Wednesday, Feb. 18, APLD stock slipped 4.9% after SEC filings revealed that NVIDIA Corporation (NVDA) had sold its entire stake. The AI chi ...

We recently published 10 Losing Stocks in an Otherwise Optimistic Market. Applied Digital Corp. (NASDAQ:APLD) was one of the worst performers on Wednesday. Applied Digital extended its losing streak to a sixth straight day on Wednesday, dropping 4.92 percent to close at $31.91 apiece, as investor sentiment was further dragged by news that Nvidia Corp. has entirely disposed of its stake in the company. Apart from Applied Digital Corp. (NASDAQ:APLD), Nvidia—considered the technology benchmark bolstering AI ...

US Dec housing starts rose +6.2% m/m to a 5-month high of 1.404 million, stronger than expectations of 1.304 million. Dec building permits (a proxy for future construction) rose +4.2% m/m to a 9-month high of 1.448 million, stronger than expectations of 1.400 million.US Dec capital goods new orders nondefense ex-aircraft and parts (a proxy for capital spending) rose +0.6% m/m, stronger than expectations o +0.3% m/m.US MBA mortgage applications rose +2.8% in the week ended February 13, with the purchase mort ...

Core Insights - Nvidia's strategic investment portfolio is increasingly focused on companies that enhance its AI ecosystem, despite facing challenges regarding AI's momentum and return on investment [2] - The company sold its entire stakes in Arm Holdings and Applied Digital, indicating a shift in investment strategy [2][7] Investment Strategy Changes - Nvidia sold its 1.1 million shares in Arm Holdings for approximately $140 million, following a failed acquisition attempt in 2020, reflecting a change in priorities as it partners with Intel [4] - The sale of Arm stock may be due to reduced strategic value as Nvidia begins manufacturing its own chips, which puts it in competition with Arm [4] - Nvidia's focus has shifted towards infrastructure enablers rather than design specialists like Arm, as evidenced by the decline in Arm's stock price from $183 to $109, a 40% drop [5] Performance and Portfolio Rebalancing - Applied Digital was Nvidia's best-performing holding in 2025, with a stock increase of 238% due to its role in AI data center operations [6] - The decision to sell its stake in Applied Digital may be a profit-taking move after a strong performance, as Nvidia reallocates investments towards larger hardware and networking firms [6][7] - Nvidia's investment in Intel is valued at nearly $8 billion, representing a 4% stake in the company [3][7]