5 Stocks That Can Still Skyrocket On The Neo Cloud Boom 

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1. Applied Digital Corp (NASDAQ:APLD)

Potential Upside: 66.4% 

On May 27, B. Riley raised the firm’s target price on Applied Digital Corp (NASDAQ:APLD) from $53 to $66 and maintained a Buy rating on the stock. The price target implies 59% upside from current levels. This upside is consistent with the median Wall Street analysts’ upside of 66.4% as per 13 analysts covering the stock.

The firm portrayed its positive sentiment on digital infrastructure companies as it believes cloud companies are signing deals faster than ever before. Investors have placed greater value on companies that have secure access to power and can deliver projects on time. This is because local communities’ opposition, grid interconnection delays, and electrical equipment shortages were becoming problems for new developments. Applied Digital Corp (NASDAQ:APLD) has managed to deal with these issues relatively well, the analyst told investors in a research note.

In another positive news on June 8, the company announced it signed a new long-term lease at its Delta Forge 2 site. The agreement is with a US-based high-investment-grade hyperscaler. This is the company’s fifth AI data center campus overall.

Applied Digital Corp (NASDAQ:APLD) builds and operates digital infrastructure for AI and computing companies in North America. The company provides data centres and GPU computing solutions for businesses working in AI. It is headquartered in Dallas, Texas, and was founded in 2021 by Wes Cummins and Jason Zhang.

While we acknowledge the potential of APLD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than APLD and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds and 12 Best Mid-Cap AI Stocks to Buy According to Analysts.

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