10 Best Performing Data Center Stocks So Far in 2025

4. Applied Digital Corp. (NASDAQ:APLD)

YTD Returns: 39.4%

Number of Hedge Fund Holders: 41

Applied Digital Corp. (NASDAQ:APLD) is a specialized player in the data center industry, focused on designing, developing, and operating advanced digital infrastructure across North America. Initially a crypto mining company, it ceased mining operations in March 2022 and pivoted toward providing digital infrastructure solutions and cloud services, catering to the rapidly growing High-Performance Computing (HPC) and AI sectors.

While the majority of Applied Digital Corp. (NASDAQ:APLD)’s revenue comes from its Data Center Hosting (DCH) division, the company is actively working to expand the contribution of its Cloud Services (CS) segment, which delivers high-performance computing power for AI and machine learning applications. The DCH business provides infrastructure solutions for crypto mining clients by offering rentable space tailored to their power requirements, and it will need to scale capacity to meet rising demand. The company is also prioritizing the expansion of its HPC services for hyperscale clients through next-generation data center development. Currently, Applied Digital is constructing a 100 MW HPC facility in Ellendale, North Dakota, with plans to scale it up to 400 MW.

On February 13, an analyst from Lake Street reaffirmed a Buy rating on Applied Digital Corp. (NASDAQ:APLD) with a price target of $11. Prior to that, on January 28, Compass Point initiated coverage on the stock with a Buy rating and a $10 price target. Year-to-date, Applied Digital has surged 39.4% in 2025, significantly outperforming the SOX Index by more than 36%.