Applied Digital Corp Corporation (APLD) Taps Babcock & Wilcox to Power $1.5B AI Factory

Applied Digital Corp (NASDAQ:APLD) is one of the top stocks offering high upside potential in the data center and AI sectors. On November 13, Northland Securities analyst Michael Grondahl reaffirmed his Buy rating on Applied Digital Corporation and assigned a $40 price target.

Applied Digital Corp Corporation (APLD) Taps Babcock & Wilcox to Power $1.5B AI Factory

Earlier on November 4, Applied Digital Corp Corporation (NASDAQ:APLD) entered into a strategic partnership with Babcock & Wilcox. Under the terms of the agreement, B&W is tasked with delivering power for Applied Digital Corp (NASDAQ:APLD), an artificial intelligence factory valued at over $1.5 billion. B&W is to design and install the plant’s 300-megawatt natural gas-fired power plant, comprising proven boilers and associated steam turbines. The AI Factory is set to begin operations in 2028.

“We’re proud to partner with B&W, a company with nearly 160 years of proven leadership in power generation,” said Wes Cummins, Chairman and Chief Executive Officer of Applied Digital. “Their advanced boiler and steam turbine technology delivers efficiency on par with the simple-cycle gas turbines we evaluated – while enabling faster deployment. This partnership enhances our ability to add more capacity to current and future sites, giving Applied Digital a distinct speed-to-market advantage in bringing power generation online.”

Applied Digital Corp Corporation (NASDAQ:APLD) designs, develops, and operates digital infrastructure for high-performance computing (HPC) and artificial intelligence (AI). It provides AI cloud services through its Say Computing brand and builds and manages data centers to host HPC and AI workloads, including GPU computing and crypto-mining.

While we acknowledge the potential of Applied Digital Corp (NASDAQ:APLD) as an investment, 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.

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Disclosure: None. This article is originally published at Insider Monkey.