Applied Digital (APLD): AI Pivot with Execution Challenges:
Applied Digital, formerly a crypto mining host, strategically pivoted to AI and HPC data centers in 2022, capitalizing on the AI buildout trend. Despite Macquarie's $5 billion investment commitment for 2 GW capacity, APLD's stock has declined due to results not meeting hype. Q3 2025 saw revenue growth (22.1% YoY to $52.92M) but missed estimates, with an EPS loss of $0.08.
While negotiating with hyperscalers, major client wins are absent, unlike competitor Core Scientific's rapid progress with CoreWeave.
APLD plans to sell its growing Cloud Services business and consider a REIT transition. Despite a visionary pivot, slow execution remains a key concern, making it a "wait-and-see" stock.
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