Applied Digital builds and runs data centers for AI and crypto mining, renting out computing power like a landlord rents office space.
Revenue comes from hosting fees for data center space and GPU computing services, with gross margins around 22% but net losses due to heavy upfront costs.
Long-term leases with CoreWeave and specialized HPC infrastructure create switching costs, but competition from Equinix and Digital Realty could erode pricing power.
Sell (sector percentile 4) — value F, growth A, profitability D, momentum D, revisions D-. Updated daily, sector-relative, identical for every user.
Key events, in time order
Multiple sources report on contracted lease revenue and AI Factory model outlook
Tiger Global Management, a prominent hedge fund, disclosed a new buy in APLD in its latest 13F filing, signaling institutional interest in the AI data center company
Director sale is insider activity, continuing weak stock context, but amount relatively small.
Multiple sources confirm $36B base rent contracts post-earnings, analysts debate valuation
Trump's remarks underscore AI data center demand, APLD mentioned as related stock, but no company-specific new facts.
B.Riley raises PT to $75 from $66; Citizens reiterates Market Outperform at $60, citing AI infra demand
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The discussion centers on AI-adjacent stocks experiencing selling pressure, with expectations of a bounce once the selling concludes, likely by next week.
Main discussion
Can you imagine liquidating 80% of this portfolio? $SNDK 28.0% $MU 27.5% $BE 9.4% $TSM 6.3% $NBIS 6.1% $CRWV 3.7% $CORZ 3.3% $STM 2.9% $APLD 2.3% $RIOT 2.3% $SHAZ 2.3% $IREN 2.1% $CLSK 0.9% $KEEL 0.8% $SEI 0.4% $WYFI 0.3% $BTDR 0.3% $TE 0.2% $HIVE 0.2% $BW 0.1% $PUMP 0.1% $VSH 0.
If this is the case, which it seems it is. Then all of these names likely have a bounce when the selling is over which should be by next week. Also add in other AI adjacent names that would of also been unwound. $WYFI $SHAZ $MU $NBIS $HIVE $CLSK $RIOT $APLD $CORZ $SNDK $IREN $HUT
$180B… all in essentially one sector. $NBIS $CIFR $WYFI $HUT $CRWV $APLD $SNDK $MU $BE $STM $TSM $RIOT $SHAZ $IREN all would have felt this impact.
Let’s add $BRUN to this list (thanks for making it @HyperTechInvest) The list, from cheapest to most expensive: > $DGXX: $0.5M EV/MW > $SLNH: $1.1M > $BTDR: $1.5M > $HIVE: $1.6M > $MARA: $1.9M > $CLSK: $2.1M > $IREN: $2.9M > $KEEL: $3.4M > $RIOT: $3.6M > $CORZ: $4.0M > $WULF: $5.
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Facts and opinions separated · All items sourced · Not investment advice
