Applied Digital Corporation (APLD) shares traded at $13.95 on August 4th, with a forward P/E of 416.67. The company operates in the AI infrastructure space, leasing high-performance compute data centers. A major lease with CoreWeave could generate $11 billion over 15 years. Strategic partnerships with industry leaders enhance growth potential.

Despite not yet being profitable, APLD’s growth potential is fueled by AI computing demand and partnerships with hyperscalers. Shorter construction timelines and scalable model create a compelling long-term investment opportunity. The stock has appreciated 46% since December 2024, with a bullish outlook on AI infrastructure demand and expansion plans.

Applied Digital Corporation, not among the 30 Most Popular Stocks Among Hedge Funds, saw 26 hedge fund portfolios holding APLD at the end of the first quarter. While the company shows investment potential, other AI stocks may offer greater upside potential with less downside risk. Those seeking undervalued AI stocks can explore opportunities in the market.

Read more at Yahoo Finance: Applied Digital Corporation (APLD): A Bull Case Theory