Latest news with #AppliedDigital
Yahoo
a day ago
- Business
- Yahoo
Jim Cramer Says Applied Digital is a 'Very Good Spec'
Applied Digital Corporation (NASDAQ:APLD) is one of the 11 stocks Jim Cramer put under the microscope recently. A caller asked for Cramer's thoughts on the company, and in response, he said: 'Okay, this is high-performance computing infrastructure, and high-performance computing is on fire. That company doesn't make any money, but I think it's a very good spec.' An overhead view of a large-scale data center with rows of servers and blinking lights. Applied Digital (NASDAQ:APLD) develops and operates digital infrastructure. The company delivers cloud services and high-performance computing tailored to sectors including artificial intelligence, machine learning, and cryptocurrency mining. It is worth noting that in April, when Cramer was asked about the company, he said: 'I know the company, and it's the kind of thing, we have so many of these digital infrastructure plays. I actually just prefer if you're going to go there, just go buy Salesforce. I'm not kidding. Go buy CRM, I would feel better that way.' While we acknowledge the potential of APLD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
2 Brilliant Stocks to Profit from the AI Infrastructure Boom
Demand for AI data centers and servers is expected to grow significantly over the long term. Applied Digital is a small data center operator with attractive prospects. Dell's AI server business is booming, yet the stock trades at just 12 times forward earnings. 10 stocks we like better than Applied Digital › Investors looking tomorrow's winners should pay attention to the development of the world's technology infrastructure. Companies are going all-in on artificial intelligence (AI), and it's leading to a massive buildout of data center infrastructure. The data center construction market is expected to increase from $240 billion in 2024 to $456 billion by 2030, according to Grand View Research. Another estimate from Statista finds that the AI server market could increase roughly 10-fold to $430 billion by 2033. Fortunately, there are companies you can invest in that offer direct exposure to these markets. Here are two stocks to profit from this opportunity. Applied Digital (NASDAQ: APLD) is a relatively small company with just $221 million in trailing-12-month revenue and a $2.2 billion market cap (share price times shares outstanding). It's a highly volatile stock, but this Dallas-based company has a lot going for it as a builder and operator of data centers. The company's data centers are designed for high-performance computing, positioning it to benefit from the AI infrastructure boom. It currently has 286 megawatts of capacity for crypto mining customers at two locations in North Dakota, which are running at full capacity. The negative is that Applied Digital is not turning a profit yet. But this is expected for a small business investing ahead of a huge opportunity. As new facilities open and revenue grows, profitability will follow. It's on schedule to have a new facility in Ellendale, North Dakota, open by Q4 2025, with two more facilities in development that should be ready within the next two years. It has a deal with Macquarie Asset Management to invest up to $5 billion to complete the buildout of its Ellendale campus. This deal will allow Applied Digital to construct more than 2 gigawatts of data center capacity, positioning it to have ample power supply to meet growing demand for AI workloads. Other catalysts include a potential sale of its cloud hosting business, which made up a third of its revenue. This will allow Applied Digital to double down on its data center business and potentially set the groundwork for the company to transition to a data center real estate investment trust (REIT). There are execution risks for a small player like Applied Digital, but its growing revenue, up 22% year over year in Q1, and major deals like the one with Macquarie paint a bright future. Dell Technologies (NYSE: DELL) is not just a PC brand but the leading supplier of servers worldwide. While sales of PCs and peripherals make up a majority of its revenue, its server business will likely exceed its PC business in the next few years. Revenue from infrastructure solutions, including AI-optimized servers, grew 12% year over year in Q1. This business makes up 44% of its revenue. Servers and networking revenue grew 16%, while segment operating income jumped 36% over the year-ago quarter. The strong growth here suggests a long-term opportunity to expand margins and grow earnings from AI demand. Dell has great long-term prospects, with order bookings for its AI servers reaching $12 billion last quarter. This is higher than all of its shipments in the previous fiscal year. The company's backlog stood at $14.4 billion, suggesting strong growth potential for its AI infrastructure group. Despite strong growth in this business, the stock continues to trade at a cheap forward price-to-earnings (P/E) multiple of around 12.5. This reflects sluggish growth and competition in the PC business, as well as traditional servers. Overall, Dell's total revenue grew just 5% year over year last quarter. However, the improving margins in the infrastructure segment drove a strong 17% year-over-year increase in earnings per share. That is plenty of earnings growth to justify a higher earnings multiple, considering Dell's leading position in the global server market. As Dell's infrastructure business continues to grow and make up a higher portion of revenue, the stock's P/E will likely expand and juice returns for investors. Dell stock looks poised to deliver market-beating returns from the current share price over the next five years. Before you buy stock in Applied Digital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Applied Digital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 John Ballard has positions in Applied Digital. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2 Brilliant Stocks to Profit from the AI Infrastructure Boom was originally published by The Motley Fool
CNBC
4 days ago
- Business
- CNBC
Lightning Round: I am horrified at what is happening at Danaher, says Jim Cramer
'Mad Money' host Jim Cramer weighs in on stocks including: Applied Digital, AST SpaceMobile, Docusign, Workday, Danaher, and SM Energy.
CNBC
4 days ago
- Business
- CNBC
Cramer's Lightning Round: 'Stay away from Workday'
Applied Digital: "High performance computing is on fire. that company doesn't make any money, but I think it's a very good spec." AST SpaceMobile: "The stock is straight got to ring the register a little bit." Docusign: "I'm going to go with the flow and tell you it's time to sell." Workday: "I'm worried. There's a lot of companies coming for Workday, and I don't like that...I want to stay away from Workday." Danaher: "I am horrified about what's happening at stock has been such a disappointment for me." SM Energy: "They are doing not well, ok. I think you should go buy Coterra if you want an oil. That is not a company that you want to own right now." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest The CNBC Investing Club Charitable Trust owns shares of Coterra Energy.
Yahoo
5 days ago
- Business
- Yahoo
2 Top Artificial Intelligence (AI) Stocks Ready for Bull Runs
As tech companies ramp up data center spending, this could be a growth catalyst for Applied Digital. Insurance company Lemonade leverages AI to offer faster service as well as keep its costs down. 10 stocks we like better than Applied Digital › The rapid growth of artificial intelligence (AI) has already had a massive impact on the stock market. Many AI companies have seen their valuations skyrocket. And according to recent research, this is just the beginning. A report released by UN Trade and Development (UNCTAD) earlier this year projects that the global AI market will grow from $189 billion in 2023 to $4.8 trillion by 2033. Given that growth, there's a strong possibility that quality AI stocks will outperform the market over the next five to 10 years. Here are two that could be poised for explosive growth. Applied Digital (NASDAQ: APLD) builds and buys data centers where companies can rent space and install their own servers. When it started out, Applied Digital catered to blockchain companies, but it later switched its focus to the high-performance computing (HPC) and AI industries. It's a straightforward business model, although Applied Digital did take a stab at offering AI cloud services through a subsidiary it launched in 2023, Sai Computing. Earlier this year, it announced plans to close that chapter by selling its cloud segment and transforming itself into a real estate investment trust (REIT). Getting back to what it does best could be a positive move for Applied Digital. Its data center hosting business is now in the black, with a profit of $8.8 million in its fiscal 2025 third quarter, which ended on Feb. 28. The cloud services business isn't. It booked a loss of $10.3 million in the quarter, despite being the faster-growing segment. On the data center front, Applied Digital announced two lease agreements with AI hyperscaler Coreweave on June 2. The agreements will last approximately 15 years and are expected to generate about $7 billion in revenue. Applied Digital stock has been soaring since then -- it's up 51% since the start of June. The top tech companies are spending heavily on data centers and AI infrastructure. Applied Digital is well-positioned to capitalize on that spending, especially as it transitions to a REIT model and focuses on its data center business. At first glance, Lemonade (NYSE: LMND) might not seem like an AI stock. It's an insurance company offering renters, homeowners, car, pet, and term life policies. But Lemonade has made AI a key part of its business since it launched in 2015. It uses AI at every stage of its processes. New customers can quickly get quotes on policies through the company's AI chatbot, Maya. It uses AI during the underwriting process to calculate people's premiums and to assign a lifetime value (LTV) to each customer based on their likelihood of filing a claim, switching insurance providers, or bundling multiple insurance products. The claims process also has built-in AI, allowing Lemonade to fully automate about 55% of its claims, according to Chief Claims Officer Sean Burgess. In addition, Burgess says that Lemonade handles over 40% of customer service tickets with AI. Lemonade isn't profitable yet, but it beat expectations in its most recent quarter. Revenue rose 27% year over year to $151.2 million in the first quarter. Its in-force premium (IFP), which is the total premium value across all active policies, also increased by 27% to $1.0 billion. That made it the sixth consecutive quarter where Lemonade's IFP has grown, and management has set an ambitious goal of growing its IFP to $10 billion in the coming years. In another good sign, its gross loss ratio -- the share of its premiums that get paid out as out claims -- is declining. It went from 88% in the third quarter of 2023 to 73% in the first quarter of 2025. While investing in young businesses that are losing money can be risky, it also gives you an opportunity to get in on the ground floor. I think that's where we're at with Lemonade. This company's high-tech business model has been great for attracting customers, particularly younger customers -- 70% of its customer base is under 35. Based on Lemonade's financial growth and embrace of AI technology, it could be poised to take off. Before you buy stock in Applied Digital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Applied Digital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,692!* Now, it's worth noting Stock Advisor's total average return is 793% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lemonade. The Motley Fool has a disclosure policy. 2 Top Artificial Intelligence (AI) Stocks Ready for Bull Runs was originally published by The Motley Fool Sign in to access your portfolio
