Applied Digital Corporation (APLD), a notable player in the Information Technology Services sector, designs and operates digital infrastructure solutions for high-performance computing (HPC) and artificial intelligence industries.
Its services span data center hosting, cloud solutions, and GPU computing for AI and machine learning tasks. Based in Dallas, Texas, the company has steadily carved a niche in delivering infrastructure for cutting-edge digital workloads.
Is now the time to buy APLD: NSD? Access our full analysis report here, it’s free.
Recent Performance and Market Conditions:
Applied Digital Corporation’s stock has seen notable fluctuations over the past year. At its last closing, the stock was priced at USD 8.71, reflecting a +1.07% gain over the past week, though it dipped by -1.97% over the past month.
Over the last year, it posted a +5.9% gain, outperforming many of its sector peers in total returns. Despite these gains, the stock remains volatile, with a beta coefficient of 4.52, indicating significantly higher risk compared to the sector median.
Stock Target Advisor’s Analysis on APLD:
Stock Target Advisor’s analysis of Applied Digital is Slightly Bearish, citing 3 positive signals and 6 negative signals:
- Strengths: High market capitalization, superior risk-adjusted returns, and positive cash flow over the past four quarters.
- Weaknesses: High volatility, overpricing compared to peers, negative free cash flow, and high leverage.
Investor Sentiment and Analyst Ratings:
Investor sentiment for APLD remains mixed but leans positive, as reflected in the company’s Strong Buy average analyst rating. Analyst target prices for the stock range from USD 5 to USD 15, with an average target of USD 10.38 over the next 12 months.
Recent ratings and updates:
- Cantor Fitzgerald & Co. initiated coverage with an Overweight rating and a target price of USD 15.
- Needham & Company reiterated its Buy rating with a target range of USD 11.
- Craig Hallum Capital Group raised its price target to USD 12, maintaining a Buy rating.
Other notable mentions include B. Riley Financial and Northland Capital, both rating the stock as a Buy, with respective targets of USD 9 and USD 12.
Ready to take your investments to the next level? For a limited time, get 70% off on Stock Target Advisor. Get started here!
Conclusion:
Applied Digital Corporation has shown promise as an emerging force in the AI and HPC industries, supported by its infrastructure and hosting solutions.
As the company prepares for its earnings spotlight on January 14, 2025, analysts and investors alike will be keen to see whether it delivers results that align with its ambitious growth targets.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
