7 Best Data Center GPU-as-a-Service Stocks To Buy

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6. Applied Digital Corp (NASDAQ:APLD)

Number of Hedge Fund Holders: 40

On April 28, John Todaro, an analyst at Needham, assigned a target price of $48 to Applied Digital Corp (NASDAQ:APLD) and maintained a Buy rating on the stock. Owing to the incredible stock performance over the last month, the stock is closing in on Needham’s price target. The firm’s price target still offers 16% upside from the current levels.

On May 4, Applied Digital Corp (NASDAQ:APLD) announced the closing of a $300 million loan from Goldman Sachs, which can be repaid at any time without fees or penalties. This loan will be used to develop and construct the company’s third AI data center at its Polaris Forge 1 campus in Ellendale, North Dakota. The company expects to need additional financing to complete the project. The financing loan acts as a bridge facility with a 364-day maturity and bears interest at the Secured Overnight Financing Rate plus 275 basis points. Saidal Mohmand, Chief Executive Officer of Applied Digital, remarked,

This financing supports the continued development of our third AI data center at Polaris Forge 1 and reflects our disciplined approach to funding projects in line with construction timelines.

Applied Digital Corp (NASDAQ:APLD) builds and operates digital infrastructure for AI and computing companies in North America. The company provides data centers 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.

Click to continue reading and see the 5 Best Data Center GPU-as-a-Service Stocks To Buy.

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