10 Best AI Stocks to Buy Under $50

7. Applied Digital Corporation (NASDAQ:APLD)

Share Price as of December 31: $24.08

Number of Hedge Fund Holders: 38

Applied Digital Corporation (NASDAQ:APLD) is one of the 10 Best AI Stocks to Buy under $50. APLD, a builder and operator of next-generation digital infrastructure designed for HPC and AI workloads, entered into a loan facility with Macquarie Group’s Commodities and Global Market’s business on December 18th.

The loan facility aims to fund the pre-lease development costs for new data center projects, supporting early-stage sourcing, planning, development, and construction of new data center campuses.

APLD said that it is in advanced negotiations with an investment-grade hyperscaler for multiple campuses. It also plans to draw an initial $100 million from the facility to fund development activities.

“This development facility strengthens our ability to move quickly on high-quality sites while maintaining capital flexibility. As demand for AI-optimized data center infrastructure continues to accelerate, this financing is intended to support our strategy of developing purpose-built campuses for hyperscale customers.”

-Wes Cummins, Chairman and Chief Executive Officer of Applied Digital.

In separate news, the company has announced that it would spin off Applied Digital Cloud into a separate company. This spinoff would be done through a merger with EKSO Bionics Holdings Inc., an exoskeleton technology firm for medical and industrial uses. The combined company, ChronoScale, would focus solely on an accelerated compute platform for AI workloads.

Analysts on Wall Street currently have a consensus Buy rating on the stock. The average price target of $40.50 implies a 68.40% upside, however, the Street-high target of $56 implies an upside of 132.85%.

Applied Digital Corporation (NASDAQ:APLD) designs, builds, and operates data centers for artificial intelligence, cloud, networking, and blockchain workloads.