Here’s What Needham Thinks About Applied Digital (APLD)

Applied Digital Corporation (NASDAQ:APLD) is one of the AI Bubble Stocks to Short Now According to Reddit. On May 28, Applied Digital Corporation (NASDAQ:APLD) was reiterated with a Buy rating and a $66 price target by Needham analyst John Todaro.

​The analyst cited strong multi-year growth visibility following conversations with the management. Todaro’s core thesis revolves around a 1.7 gigawatt development pipeline spread across three campuses, with strong power deliveries from late 2027 into 2028. He believes that this positions the company to capture AI and data center demand for an extended period.

​The analyst also noted customer diversification as a key risk-reduction factor. He highlighted that by expanding beyond a single hyperscaler, the company is targeting investment-grade revenues of 70%. Based on this thesis, the analyst finds Applied Digital as an attractive stock at current valuations.

​Although Applied Digital Corporation (NASDAQ:APLD) has a high short float ratio of roughly 29.9%, Wall Street’s 12-month average price target suggests more than 50% upside from the current level.

While we acknowledge the risk and potential of APLD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APLD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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