Applied Digital: Riding The Data Center Wave Before It Gets Crowded

Buy Applied Digital (APLD): triple-digit revenue growth and strong data center demand signal more upside.

Now, roughly 230% increase later over the past year, I have decided to initiate my coverage on Applied Digital (APLD). Why now? I have been closely monitoring the company's performance.

And, quite frankly, I liked it a Summary - Applied Digital receives a Buy rating, driven by robust triple-digit revenue growth and strong future demand signals. - APLD is positioned as a significant beneficiary in the data center market, which may still be in its early innings. - Despite substantial appreciation and not being the cheapest data center play, I see no structural concerns undermining the bullish thesis.

- Potential risks include recent rapid price gains and the possibility of a near-term breather, but catalysts remain compelling. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in APLD over the next 72 hours. I wrote this article myself, and it expresses my own opinions.

I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.