13 Best AI Stocks to Buy Under $10

3. Applied Digital Corporation (NASDAQ:APLD)

Stock Price as of May 12: $5.39

Number of Hedge Fund Holders: 41

Applied Digital Corporation (NASDAQ:APLD) is an information technology services company that designs, develops, and operates digital infrastructure solutions and cloud services for high-performance computing (HPC) and artificial intelligence industries. It offers infrastructure services to crypto mining customers and GPU computing solutions for critical workloads related to AI, machine learning, and other HPC tasks. On April 23, Needham reiterated a Buy rating on the stock with a $10 price target buoyed by the company’s prospects in the burgeoning cloud computing industry.

Applied Digital Corporation’s (NASDAQ:APLD) long-term prospects hinge on increased spending in AI Hardware and other processing capabilities. Consequently, the stocks sentiments have received a significant boost on confirmation that tech giants led by Microsoft and Meta plan to continue spending on AI hardware and processing capabilities.

Applied Digital Corporation’s (NASDAQ:APLD) delivered impressive third-quarter fiscal 2025 results, characterized by a 22% year-over-year revenue increase. The company’s cloud service business posted a 220% revenue increase to $17.8 million. The robust revenue growth affirms that positioning in high-performance computing infrastructure will surely generate long-term value. The company is already working on the Ellendale campus in addition to a 100MW HPC facility expected to strengthen its competitive edge in the hyperscaler market.