Company Overview - Applied Digital Corporation operates in the technology infrastructure market, focusing on digital infrastructure for high-demand computing applications, particularly supporting AI and HPC workloads through specialized data centers and cloud services [5] - The company generates revenue through infrastructure services for crypto mining, GPU computing solutions, and the design, construction, and management of data centers, serving enterprise clients in AI, machine learning, and HPC sectors across North America [6] Financial Performance - As of September 30, Applied Digital reported a revenue of $64.2 million for the fiscal third quarter, reflecting an 84.3% year-over-year increase [10] - The company has a market capitalization of $6.34 billion and a total revenue of $219.02 million for the trailing twelve months (TTM), with a net loss of $225.71 million [4] Stock Performance - As of November 13, shares of Applied Digital were priced at $23.06, which is a 221.6% increase over the past year [3] - The stock has gained 231.4% over the last year, significantly outperforming the S&P 500 index's 17.7% return and the Nasdaq Composite's 20% [9] Investment Activity - Hood River Capital Management LLC sold 812,377 shares of Applied Digital during the third quarter, reducing its position by 3.7%, while the remaining stake stands at 21,046,654 shares valued at $482.8 million, representing 5.7% of the fund's assets under management [2][3][9]

Key Points Applied Digital builds data center campuses for cloud and AI companies. Nebius provides customized AI infrastructure services for a wide range of industries. One of these companies is growing faster and trading at more attractive valuations. 10 stocks we like better than Applied Digital › Applied Digital (NASDAQ: APLD) and Nebius (NASDAQ: NBIS) represent two distinct investment options in the rapidly growing artificial intelligence (AI) market. Applied Digital builds data center campuse ...

Core Viewpoint - TeraWulf Inc. has achieved a significant milestone with a new $9.5 billion partnership deal with Fluidstack for the development of a data center, leading to a surge in its stock price and establishing it as a top performer in the market [1][3]. Group 1: Partnership and Development - TeraWulf Inc. partnered with Fluidstack to develop a facility capable of powering 168 MW of critical IT load, with TeraWulf holding a 51% stake in the project [2][4]. - The joint venture includes a 25-year hosting commitment and the right to develop additional phases at the Abernathy campus, leveraging existing infrastructure for future capacity expansions [3]. Group 2: Financial Performance - In intra-day trading, TeraWulf's stock price reached a high of $17.05 before closing at $15.94, reflecting a 16.86% increase [2]. - Following the new deal, TeraWulf's contracted high-performance computing (HPC) platform capacity now exceeds 510 MW, with a growth strategy targeting an additional 250 MW to 500 MW of contracted capacity annually [5].

Core Insights - Hut 8 Corp. is gaining attention as a profitable energy and Bitcoin mining company, but its parabolic stock movement raises concerns about sustainability [1] - Jim Cramer emphasizes the lack of analyst coverage for Hut 8 and similar stocks, despite their high trading volumes, indicating a potential investment opportunity [1] - The current market environment may lead to more IPOs of lesser-known companies, which could remain overlooked by analysts, creating a gap in market awareness [1] Company Overview - Hut 8 Corp. operates in energy and Bitcoin mining, providing infrastructure development, data center hosting, and cloud services [1] - The company is noted for its significant trading volume, with Cramer highlighting that any stock trading 10 million shares a day deserves attention [1] Market Context - There is a growing interest among younger investors in stocks like Hut 8, while traditional analysts may overlook them [1] - The reopening of the IPO market is expected to introduce numerous companies that may not receive adequate coverage, reflecting a shift in market dynamics [1]

Core Insights - Applied Digital Corporation (NASDAQ:APLD) is recognized for its digital infrastructure solutions, including data center hosting, GPU computing, and high-performance computing services for AI, machine learning, and crypto mining [1] - The company is currently not profitable, which raises concerns among investors, as highlighted by Jim Cramer, who suggests that NVIDIA is a more profitable alternative in the same business [1] - Despite its lack of profitability, APLD is considered a speculative investment due to the growing demand for high-performance computing [1] Company Overview - Applied Digital Corporation specializes in providing digital infrastructure solutions, focusing on data center hosting and high-performance computing services [1] - The company designs and manages data centers to support advanced computing applications, which are increasingly in demand due to trends in AI and crypto mining [1] Market Position - Jim Cramer has expressed skepticism about APLD's profitability, suggesting that investors might be better off investing in more established companies like Salesforce [1] - The commentary indicates that while APLD has potential, other AI stocks may offer better upside potential with less risk [1]

Financial Data and Key Metrics Changes - Revenues for fiscal year 2025 were $38 million, up 41% year over year, driven by increased capacity in the data center hosting business [14] - Cost of revenues increased by $7.5 million to $30.2 million, also due to increased capacity [14] - SG&A expenses rose by $15 million to $28.1 million, influenced by business growth and stock-based compensation [15] - Net loss attributable to common stockholders was $26.6 million, or $0.12 per share, while adjusted net loss was $7.6 million, or $0.03 per diluted share [15] - Adjusted EBITDA for the quarter was $1 million [16] - Cash, cash equivalents, and restricted cash at the end of the quarter totaled $120.9 million, with total debt at $688.2 million [16] Business Line Data and Key Metrics Changes - The data center hosting segment operates 286 megawatts of fully contracted capacity for cryptocurrency customers [12] - The cloud services business is under review for strategic alternatives, with no updates provided [12] Market Data and Key Metrics Changes - The company signed a transformative 15-year lease with CoreWeave for 250 megawatts at the Polaris Forge One campus, expected to generate approximately $7 billion in contracted revenue [6] - CoreWeave has also exercised an option for an additional 150 megawatts, indicating strong demand for AI infrastructure [6] Company Strategy and Development Direction - The company aims to position itself as a leader in AI and HPC infrastructure, with a focus on scalable data center solutions [6][10] - Strategic decisions include reducing the number of SKUs by 50% and consolidating suppliers to enhance efficiency [8] - The company is actively marketing its multi-gigawatt pipeline to a diverse customer base, leveraging its competitive advantages [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong relationships with hyperscalers and a robust pipeline of projects [19] - The company anticipates significant revenue growth in the upcoming quarters due to the technical fit-out of the Polaris Forge One building [17] Other Important Information - The company has raised approximately $270 million through its ATM and Series G preferred stock since the end of the quarter [13] - The first 100-megawatt facility is expected to be operational in Q4 2025, with subsequent facilities planned for 2026 and 2027 [7][39] Q&A Session Summary Question: Development cadence for 2026 and potential groundbreaking for a second campus - Management expects to break ground on one additional campus and potentially two before the end of the year [22] Question: Gating items for financing - The biggest gating item is the general slowdown in August, with reliance on professional service providers for construction reports and documentation [23][24] Question: Status of advanced negotiations with a customer - Management confirmed advanced negotiations with an investment-grade North American hyperscaler, with ongoing discussions with several others [30][31] Question: Fit-out status for the Ellendale facility - The fit-out is underway, with expectations for customer gear to be on-site by Q4 of the calendar year [32] Question: Terms for project financing related to CoreWeave - Financing terms are largely as expected, with costs in the high twos to low fours for investment-grade tenants [38] Question: Timeline for Building 2 and penalties for delays - Building 2 is progressing well, with a timeline of approximately twelve months, and standard lease penalties apply for late delivery [45][49] Question: Hyperscalers' interest in owning infrastructure - The company is focused on full-stack ownership of campuses rather than powered shell agreements, which are less favorable as a public company [55] Question: Progress on sales tax in South Dakota - No progress has been made on sales tax issues, with focus currently on a large campus in North Dakota [56]

Core Insights - Applied Digital (APLD) is expected to report its fourth-quarter fiscal 2025 results on July 30, with revenues estimated at $42.99 million, reflecting a year-over-year decline of 3.09% [1] - The consensus estimate for loss is projected at 12 cents per share, which is a slight increase from previous estimates, compared to a loss of 52 cents in the same quarter last year [1] Financial Performance - APLD has missed the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of negative 113.42% [2] - The Data Center Hosting segment is gaining momentum despite a 7% year-over-year revenue decline in the fiscal third quarter, operating at full capacity across two locations in North Dakota [6] Market Dynamics - Increased spending by hyperscalers like Microsoft and Meta Platforms is a significant driver for APLD, with Meta planning to invest between $64 billion and $72 billion and Microsoft expected to reach $80 billion in capital expenditures in 2025 [5] - APLD's HPC and data center growth plans are further supported by a 250MW lease agreement with CoreWeave [10] Strategic Initiatives - APLD is building out its Ellendale campus with 400MW of critical IT load, backed by financing agreements totaling $5.375 billion, with the first 100MW facility expected to be operational in the fourth quarter of 2025 [15] - The company plans to divest its Cloud Services business to streamline operations and potentially convert to a REIT, which could lower capital costs and enhance valuation [17] Stock Performance - APLD shares have increased by 40.7% year to date, outperforming the Zacks Finance sector's return of 11% [8] - The stock is currently trading above its 50-day and 200-day moving averages, indicating a bullish trend [18]