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Roth Capital and Citizens Stay Bullish on Applied Digital Corporation (APLD)

Applied Digital Corporation (NASDAQ:APLD) is one of the 15 AI Stocks With Explosive Growth Potential.

Applied Digital Corporation (NASDAQ:APLD) is one of the best AI stocks with explosive growth potential. On February 18, Roth Capital reiterated its Buy rating on Applied Digital Corporation (NASDAQ:APLD) with a price target of $58. The research firm said it is “buying shares” after the stock fell in after-hours trading following news that NVIDIA Corporation (NASDAQ:NVDA) is selling its stake in Applied Digital Corporation (NASDAQ:APLD).

Roth Capital’s analyst said many things have changed since the earlier NVIDIA-led financing. The company has signed 2 colocation leases, one with CoreWeave, Inc. (NASDAQ:CRWV) and another with a hyperscaler, with a third lease expected to come soon. According to Roth Capital, the recent stock drop is driven more by “headline risk than any fundamental change” in the company’s investment story.

Earlier, on February 12, Citizens also reiterated its Market Outperform rating on Applied Digital Corporation (NASDAQ:APLD) with a $40 price target. The research firm pointed to its 400 megawatts (MW) of purpose-built capacity at its Polaris Forge 1 Campus, which is fully leased to CoreWeave, Inc. (NASDAQ:CRWV). The first 100MW became ready for service in November 2025. Another 150MW is scheduled to be ready by mid-2026, and the remaining 150MW is expected to come online in 2027.

Citizens also pointed out that Applied Digital Corporation (NASDAQ:APLD) has signed a 200MW lease with an investment-grade hyperscaler. This agreement includes an option for an additional 800MW, which could allow the company to reach a total deployment of 1 gigawatt (GW).

The research firm noted that the company has a 4.3GW active development pipeline, which makes it one of the largest high-performance computing (HPC) and artificial intelligence (AI) infrastructure providers in North America.

Applied Digital Corporation (NASDAQ:APLD) is a technology company that designs, develops, and operates digital infrastructure for the high-performance computing (HPC) and artificial intelligence (AI) industries.

While we acknowledge the potential of 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 a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Stocks Under $10 to Invest In Right Now and 40 Most Popular Stocks Among Hedge Funds Heading Into 2026.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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