10 AI News And Ratings on Wall Street’s Radar

5. Applied Digital Corp. (NASDAQ:APLD)

Number of Hedge Fund Holders: 26

Applied Digital Corporation (NASDAQ:APLD) designs, constructs, and operates data centers and offers cloud services for AI to help meet the rapidly growing demand for high-performance computing. The company also focuses on constructing data centers near renewable energy sources as part of its sustainability goals to lower the carbon footprint of high-power computing.

On January 28th, Compass Point analyst Joe Flynn initiated coverage of Applied Digital with a “Buy” rating and a $10 stock price target. The brokerage firm, which acknowledges that its target price implies a 50% upside following the 28% selloff in the stock yesterday related to the DeepSeek disruption, believes the risk-reward of signing a 100MW-400MW lease with a hyperscaler this year is more lucrative. Furthermore, the company’s Macquarie Asset Management Equity Partnership will also help secure a lease “over the finish line.” Following the selloff, analysts see “an interesting opportunity to again buy into the stock to play the HPC datacenter lease signing catalyst,” adding the upside opportunity “looks binary based on whether APLD can sign a 400MW lease in 2025 or not.” Compass Point noted that using a 60%/40% probability gets to an expected value above the current stock price with a “free option” on the pipeline beyond 400MW.