Complete List of All AI Companies Under $2 Billion Market Cap

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1. Applied Digital Corporation (NASDAQ:APLD)

Market Capitalization: $1.904 Billion

Number of Hedge Fund Holders: 26

Applied Digital Corporation (NASDAQ:APLD) specializes in developing and operating next-generation data centers and cloud infrastructure. Its custom-designed facilities are built to optimize accelerated computing and provide secure, scalable digital hosting services, including CSaaS and GPU-as-a-Service. With extensive hyperscale experience and a strong power supply pipeline, Applied Digital focuses on supporting demanding AI/ML, blockchain, and high-performance computing (HPC) workloads, including AI factories.

In December 2024, Applied Digital reached an important milestone in its Ellendale, N.D., data center project by successfully energizing its main substation transformer. This step moves the facility closer to supporting advanced AI and high-performance computing. The milestone was celebrated with partners, including Montana-Dakota Utilities and the local community. Applied Digital also requested annexation to Ellendale to increase local revenue and services.

Analyst Darren Aftahi of Roth MKM keeps a positive outlook on Applied Digital (NASDAQ:APLD), which is based on the company’s financial restructuring, including revised depreciation schedules that are expected to improve AI Cloud segment profitability and refinancing of debt, positioning the company for growth. Aftahi also sees potential revenue growth from the expanding AI Cloud business and steady Bitcoin hosting revenues, with the broader industry, especially Microsoft’s investments in AI data centers, expected to drive increased demand. Aftahi maintains a Buy rating on the company stock with a $13 price target.

While we acknowledge the potential of Applied Digital Corporation (NASDAQ:APLD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than APLD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.

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