Latest news with #Ellendale
Yahoo
6 days ago
- Business
- Yahoo
Applied Digital (APLD) Soars 9.3% as Earnings Near
We recently published . Applied Digital Corporation (NASDAQ:APLD) is one of this week's top performers. Applied Digital rallied for a fifth consecutive day, jumping 9.35 percent to close at $11.93 apiece as investors continued to snap up shares ahead of the release of its earnings performance for the fourth quarter of fiscal year 2025. According to the company, it will announce the results of its financial and operating highlights in an investor briefing on July 30 at 5 PM Eastern Time. A press release detailing its financials will follow on the same day. At present, Applied Digital Corporation (NASDAQ:APLD) carries an overall optimistic rating from analysts amid its strong historical earnings. Bayurov Alexander/ Investor confidence was further supported by two newly clinched 15-year leases with CoreWeave, Inc. (NASDAQ:CRWV) where Applied Digital Corporation (NASDAQ:APLD) committed to deliver 250 megawatts of critical IT load to host the former's artificial intelligence and high-performance computing infrastructure at its Ellendale, North Dakota data center campus. While we acknowledge the potential of APLD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. 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
09-07-2025
- Business
- Yahoo
Can New AI-Focused Leases Offset APLD's Cloud Segment Decline?
Applied Digital APLD is undergoing a strategic pivot to re-anchor its business around hyperscale data center leasing, particularly AI-focused infrastructure, as its Cloud Services segment struggles to scale profitably. While the third-quarter fiscal 2025 revenues rose 22% year over year to $52.9 million, the Cloud business delivered only $17.8 million, down sequentially due to a shift toward on-demand capacity and technical issues during a multi-tenant configuration rollout. In contrast, APLD's Data Center Hosting segment continues to gain momentum. Backed by financing agreements from Macquarie ($5 billion) and SMBC ($375 million), the company is building out its Ellendale campus with 400MW of critical IT load, with the first 100MW facility expected to go live in the fourth quarter of 2025. Notably, this pipeline includes a landmark $7 billion lease deal with CoreWeave, offering recurring revenues over 15 years and validating the economic promise of its HPC infrastructure. However, the Cloud Services business remains a drag, using more than $10 million in the fiscal third quarter alone and facing mounting competitive pressure from CoreWeave CRWV, now a data center tenant and rival in GPU computing. Applied Digital is exploring a sale or strategic spinout of this business, acknowledging it poses a point of friction for hyperscaler leasing negotiations and doesn't align with a prospective REIT transition. The company's ability to offset cloud losses hinges on monetizing Ellendale's AI-ready capacity. With 1.4GW in planned buildout and active lease discussions, APLD has a compelling footprint. But execution risks remain—finalizing leases and navigating high CapEx ($30–50 million/month), amid intense sectoral competition. APLD's strategic pivot toward leasing hyperscale AI data center capacity, exemplified by the CoreWeave deal, offers a clearer path to profitability. Yet, until the Cloud Services business is divested or offset, its capital burden and competitive overlap may continue to suppress margins and investors. Marathon Digital Holdings MARA is transforming into a vertically integrated digital energy and infrastructure firm. It's actively developing AI-aligned modular data centers with low-latency capabilities and is in advanced talks with compute OEMs to pilot AI inference workloads in 2025. Marathon Digital's custom-built 2PIC immersion cooling and power-optimized sites in Texas and North Dakota are tailored for both mining and AI use cases. Its low-cost power generation strategy, including wind and flare gas, supports sustainable scalability. While still focused on Bitcoin, Marathon Digital sees AI infrastructure as a key monetization path, offering high-IRR expansion opportunities through stranded energy and flexible compute demand alignment. Core Scientific CORZ is aggressively scaling its AI-aligned infrastructure via a major partnership with CoreWeave. The company is building out 570 MW of high-density capacity, including a 260 MW site in Denton, TX, expected to host one of North America's largest GPU clusters. CoreWeave funds most of the CapEx under a take-or-pay model, significantly reducing Core Scientific's capital burden. The company plans to expand to 590MW by 2027 and diversify its customer base to reduce CoreWeave's share of capacity below 50% by 2028. With a growing enterprise pipeline and minimal capital exposure, Core Scientific is positioning itself as a capital-light leader in AI infrastructure. Shares of APLD have surged 20.7% in the year-to-date period against the industry's decline of 3.5%. Image Source: Zacks Investment Research From a valuation standpoint, Applied Digital trades at a forward price-to-sales of 7.97X, above the industry average as well as its five-year median of 5.03X. APLD carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Applied Digitals' fiscal 2026 earnings implies a 73.6% rise year over year. Image Source: Zacks Investment Research The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report Applied Digital Corporation (APLD) : Free Stock Analysis Report Core Scientific, Inc. (CORZ) : Free Stock Analysis Report CoreWeave Inc. (CRWV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
05-07-2025
- Business
- Yahoo
Applied Digital, BASX Partner for Zero-Water Cooling Solutions at North Dakota AI Data Center
Applied Digital Corporation (NASDAQ:APLD) is one of the best NASDAQ growth stocks to buy for the next 3 years. On June 30, BASX, which is a wholly-owned subsidiary of AAON Inc. (NASDAQ:AAON), announced a partnership with Applied Digital Corporation. This collaboration deploys advanced cooling solutions for Applied Digital's purpose-built AI data center campus in Ellendale, North Dakota, known as Polaris Forge 1. This partnership involves BASX designing and manufacturing a customized free-cooling chiller system specifically optimized for cold-climate operation at Applied Digital's Polaris Forge 1 AI factory. The system is engineered to reduce power demand and requires zero water consumption, which addresses the unique AI infrastructure demands that necessitate 15x to 30x the power density of traditional data centers. An overhead view of a large-scale data center with rows of servers and blinking lights. The free cooling chiller system operates in 3 optimized modes, all without using water: Full Free Cooling, which rejects 100% of the IT load using only pumps and fans; Partial Free Cooling, which uses ambient air for as much load as possible, supplementing with direct expansion/DX cooling when necessary; and Full Mechanical Cooling, which engages compressors and coils for full DX capacity during peak ambient conditions. Applied Digital Corporation (NASDAQ:APLD) designs, develops, and operates digital infrastructure solutions and cloud services for HPC and AI industries in North America. BASX manufactures high-efficiency data center cooling, cleanroom systems, custom HVAC, and modular solutions. AAON Inc. (NASDAQ:AAON) engineers, manufactures, markets, and sells air conditioning and heating equipment. 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 . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Globe and Mail
02-07-2025
- Business
- Globe and Mail
Do Rising Costs Raise Red Flag Despite APLD's Revenue Growth?
Applied Digital Corporation APLD posted third-quarter fiscal 2025 revenue growth of 22% (reaching $52.9 million), driven largely by expanded data center and cloud capacity. However, the company's widening losses — $36.1 million net loss or a 16-cent loss per share — are raising investor concerns about sustainability amid aggressive expansion. APLD continues to execute its expansion plan. Its Ellendale campus remains on track to go-live in the fourth quarter of fiscal 2025, backed by strategic financing from Macquarie ($5 billion commitment) and SMBC ($375 million). Additionally, adjusted EBITDA improved significantly to $10 million, reflecting underlying business potential despite near-term turbulence. Yet, costs are escalating. Cost of revenues rose to $49.1 million due to increased facility operations, while interest expenses nearly doubled year over year to $8.9 million amid elevated debt levels ($689.1 million). Seasonal power costs and a transition from single to multi-tenant cloud configurations led to margin compression. Cloud revenues also declined sequentially due to technical hurdles, though these have been (reportedly) resolved. Strategically, APLD now plans to divest its Cloud Services business, partly because hyperscaler clients view it as a competitor, and streamline a potential REIT transition. This raises questions about long-term strategic cohesion and the timing of monetization. While APLD's infrastructure and capital backing are strengths, its rising costs, sequential revenue softness, and pending cloud divestiture suggest execution risks. Investors should weigh near-term volatility against the long-term value of its hyperscale-driven data center pipeline. Mixed Rival Performance Equinix EQIX delivered first-quarter 2025 revenues of $2.2 billion, up 8% year over year, driven by strong recurring revenues and enterprise demand for AI and hybrid cloud infrastructure. Adjusted EBITDA reached $1.1 billion, with margins rising to 48%, aided by lower utilities costs and improved sales productivity. AFFO climbed 13% to $947 million, exceeding expectations. While CapEx was $750 million, Equinix maintained disciplined spending, targeting large metro expansions. Despite EMEA churn, cabinet yield and U.S. growth remain robust. EQIX raised full-year revenue guidance by $142 million and continues to target nearly 50% EBITDA margin, reflecting resilience amid macroeconomic volatility. CoreWeave CRWV posted explosive first-quarter 2025 revenue growth of 420%, reaching $982 million. The figure beat the consensus mark by $122 million. Adjusted EBITDA surged to $606 million with a 62% margin, while adjusted operating income jumped 550% to $163 million. However, the net loss widened to $315 million, primarily due to IPO-related stock compensation and higher interest expenses. CapEx was substantial at $19 billion, reflecting accelerated investment in data centers and AI infrastructure. With new contracts from OpenAI and enterprise expansions totaling over $15 billion, CRWV has raised its full-year revenue guidance to $5.1 billion, signaling strong demand and confidence in the long-term scalability of its platform. APLD's Price Performance, Valuation and Estimates Shares of APLD have surged 27.7% in the year-to-date period compared with the industry 's gain of 3.2%. From a valuation standpoint, Applied Digital trades at a forward price-to-sales ratio of 8.64, which is above the industry average and higher than its five-year median of 1.45. APLD carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Applied Digitals' fiscal 2026 earnings implies a 73.6% rise year over year. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Equinix, Inc. (EQIX): Free Stock Analysis Report Applied Digital Corporation (APLD): Free Stock Analysis Report CoreWeave Inc. (CRWV): Free Stock Analysis Report
Globe and Mail
24-06-2025
- Business
- Globe and Mail
APLD: A Turnaround in Profitability or Mirage Behind Adjusted EBITDA?
Applied Digital 's APLD fiscal third-quarter 2025 results reflect a mixed bag of progress and persistent challenges, fueling a deeper debate over the company's ability to maintain consistent profitability. The 878% year-over-year jump in adjusted EBITDA (to $10 million) is indicative of its operational strength. However, the bottom-line GAAP reality tells a different story — a net loss of $36.1 million or 16 cents per share, which missed Street estimates by 5 cents. This widening gap between adjusted metrics and actual profitability has raised fresh concerns over the company's capital structure and earnings quality. Despite recording top-line revenue growth of 22% (totaling $52.9 million), APLD missed expectations by nearly $10 million. The quarter reflected operational hiccups, including technical issues transitioning its GPU clusters from single-tenant to a multi-tenant, on-demand model in the Cloud Services segment — an issue now resolved but responsible for revenue deceleration. Meanwhile, the Data Center Hosting segment experienced margin compression due to seasonal power cost increases. Strategically, Applied Digital made bold moves with financing partnerships — securing a $5 billion capital commitment from Macquarie and a $375 million loan from SMBC — strengthening its liquidity for the Ellendale campus buildout. However, the company also announced that it is reviewing strategic alternatives for its AI Cloud Services business, citing conflict with hyperscaler leasing prospects and potential REIT conversion benefits. With a rising debt load of $689.1 million and mounting interest expenses, investors are increasingly assessing whether Applied Digital's growth is self-sustaining or overly reliant on adjusted metrics and leveraged financing. As management eyes a potential sale of its AI business and continues to push aggressive campus expansion, the fundamental question looms: Is this a genuine turnaround or simply a mirage created by non-GAAP profitability optics? The answer may shape the next leg of APLD's market narrative. How Are APLD Rivals CORZ & MARA Performing? Core Scientific CORZ reported first-quarter 2025 revenues of $79.5 million, reflecting a sharp 55.6% year-over-year decline. This is indicative of the continued challenges in the crypto mining environment. The company posted an operating loss of $42.6 million, and adjusted EBITDA swung to a negative $6.1 million from $88 million in the prior-year period. While GAAP net income turned positive due to a $621.5 million non-cash gain related to warrants, core operations remained under pressure. The results highlight Core Scientific's transitional phase post-bankruptcy, as it works to stabilize operations amid fluctuating Bitcoin prices and elevated energy costs that continue to compress mining margins. Marathon Digital MARA reported first-quarter 2025 revenues of approximately $214 million, marking a 30% year-over-year increase. Despite strong top-line growth and a nearly doubled hashrate reaching 54.3 EH/s, the company posted a net loss of $533 million, or $1.55 per share. The loss was primarily due to a $552 million non-cash fair value adjustment on digital assets and derivative instruments. Adjusted EBITDA also turned negative at $484 million. The top and bottom-line figures missed analyst expectations, raising concerns about volatility in crypto asset valuations and its impact on Marathon's bottom line despite ongoing operational expansion. APLD's Price Performance, Valuation and Estimates Shares of APLD have surged 29.2% in the year-to-date period against the industry 's decline of 3.7%. From a valuation standpoint, Applied Digital trades at a forward price-to-sales ratio of 8.97X, above the industry average as well as its five-year median of 1.44X. APLD carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Applied Digitals' fiscal 2026 earnings implies a 73.6% rise year over year. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report Applied Digital Corporation (APLD): Free Stock Analysis Report Core Scientific, Inc. (CORZ): Free Stock Analysis Report
