13 Best Small Cap Tech Stocks to Buy Now

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2. Applied Digital Corp. (NASDAQ:APLD)

Number of Hedge Fund Holders: 42

Market Capitalization: $1.42 billion

Applied Digital Corp. (NASDAQ:APLD) is a specialist data center company that designs, develops, and operates sophisticated digital infrastructure throughout North America. The company offers digital infrastructure solutions for blockchain mining operations, as well as GPU computing solutions for essential AI and HPC workloads.

On January 15, Lake Street Capital Markets reiterated its Buy rating on Applied Digital Corp. (NASDAQ:APLD), with a steady price target of $11. Rob Brown, the firm’s analyst, expressed satisfaction with the company’s second-quarter results, which exceeded expectations and represented another period of strong execution in its Bitcoin hosting and AI Cloud sectors. Both sectors are approaching full capacity, resulting in an annual EBITDA rate of more than $80 million.

The company is also focusing on the expansion of its HPC services for hyperscale clients by developing next-generation data centers. To that end, Applied Digital Corp. (NASDAQ:APLD) recently announced a $375 million financing agreement with Sumitomo Mitsui to expand its Ellendale HPC Campus. The financing will enable the company to settle current debts and fund the construction of the first two buildings on campus.

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