So back in early October of 2022, you plunked $10,000 into shares of Applied Digital (APLD 0.21%). What's that worth now?
It might seem impossible to find fast-growing companies in the artificial intelligence (AI) market that are undervalued, but they are out there if you look in the right places. While chips and software companies are trading at high multiples of their earnings, the companies meeting the demand for AI infrastructure like data centers trade at attractive valuations.
The 'Undercovered' Dozen series highlights 12 lesser-covered stocks weekly, providing investment ideas and sparking community discussion on their potential. Among today's stocks covered are B2Gold, Merck, Applied Digital, Occidental Petroleum, and Stride. ETFs such as ULTY, SPYI, JEPI And and IGLD earned a spot on this week's list.
It can be intimidating to step into a stock that's been in full-blown rally mode for a while. It feels like you're paying a steep price that could tumble at the drop of a hat.
AI data center growth is constrained by capacity, creating a major opportunity for operators like Applied Digital to serve hyperscalers and HPC clients. Applied Digital's pivot to focus on hyperscalers, highlighted by multi-billion deals with CoreWeave, sets up an estimated 80% revenue CAGR through 2028. Despite strong growth prospects, market skepticism and heavy reliance on CoreWeave depress Applied's valuation, making shares undervalued versus peers.
Despite a stretched valuation, APLD's AI-focused strategy, long-term contracts and Polaris Forge buildout makes the stock attractive for investors.
The average of price targets set by Wall Street analysts indicates a potential upside of 25.4% in Applied Digital Corporation (APLD). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
The growth of artificial intelligence (AI) is the biggest opportunity in technology since the internet and PC adoption in the 1990s. Top tech companies continue to report surging demand across cloud services, software, and semiconductors.
Applied Digital (APLD 1.78%) is positioning itself as a powerhouse in artificial intelligence (AI) and high-performance data centers. With billions in long-term contracts and strong institutional backing, could this sleeping giant turn small investments into massive gains?
Occasionally, a company transitions from relative anonymity to becoming a focal point of a megatrend almost instantaneously, and Applied Digital (NASDAQ: APLD) serves as an exemplary case. Only a few years ago, it operated as a specialized data center business.
The artificial intelligence revolution is clearly upon us. Whether we're talking about individuals using AI to post pictures on the internet or concoct a beautiful dinner, or corporations looking to implement AI solutions to do more with less, there seems to be a trillion different use cases for a technology that can think and process faster than humans.
Does Applied Digital Corporation (APLD) have what it takes to be a top stock pick for momentum investors? Let's find out.