We recently published a list of the 10 Best US Stocks Under $10 to Buy Right Now. In this article, we are going to take a look at where Applied Digital Corp. (NASDAQ:APLD) stands against other US stocks under $10 to buy right now.
On March 12, Stephanie Guild of Robinhood and Marci McGregor of Bank of America Merrill Lynch shared their perspectives on the current state of the market and strategies for navigating uncertainty. Guild explained that retail investors’ approach to buying the dip has shifted in line with changing market dynamics. While clients are still investing, they are focusing on specific names they favor. At the same time, she noted an increased tendency toward diversification, with investors allocating funds to index investments more than ever before. Additionally, many are taking advantage of Robinhood’s 4% cash yield, which reflects a balanced approach to investing during uncertain times.
McGregor emphasized the importance of focusing on long-term trends rather than reacting to short-term headlines, which often create unnecessary noise. She attributed some weak economic data from January to weather-related factors, calling it a temporary head fake. While acknowledging ongoing uncertainty around trade policy, McGregor highlighted key drivers for market recovery. She pointed out that 6 of the 11 S&P 500 sectors posted double-digit year-over-year earnings growth in Q4 and noted that market broadening is underway. Year-to-date, 63% of S&P constituents have outperformed the index compared to less than 30% over the last two years. This broadening trend signals potential strength in the market. Looking ahead, McGregor predicts a gradual easing of financial conditions later this year, potentially supported by a weaker dollar and improving corporate conditions. She suggested that if soft economic data begins to manifest more clearly, it could lead to Fed rate cuts. Factors such as deregulation, a merger cycle, and potential tax cut extensions may also contribute to recovery. Despite uncertainties, McGregor advised clients to buy on weakness and stay diversified. This includes exposure to international markets like Europe while maintaining confidence in the US as a leading market.
Our Methodology
We used the Finviz stock screener to compile a list of the top US stocks that were trading below $10 as of March 24. We then selected the 10 US stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An overhead view of a large-scale data center with rows of servers and blinking lights.
Applied Digital Corp. (NASDAQ:APLD)
Share Price as of March 24: $7.07
Number of Hedge Fund Holders: 42
Applied Digital Corp. (NASDAQ:APLD) provides digital infrastructure and cloud services. It specializes in high-performance computing (HPC) and artificial intelligence (AI) solutions across North America. It offers data center hosting, GPU computing, and related infrastructure development.
The company’s Cloud Services segment provides HPC for AI applications. In FQ2 2025, this segment generated $27.7 million in revenue out of the company’s total revenue of $63.9 million. This contributed to the company’s overall 51% year-over-year revenue increase. Applied Digital Corp. (NASDAQ:APLD) had six GPU clusters online at the end of the quarter and is exploring further opportunities as new GPUs become available, as they become increasingly significant for HPC.
The company’s new partnership with Macquarie Asset Management, which includes a $5 billion financing facility, will further fuel the development of HPC data centers which is crucial for expanding Cloud Services. On February 4, Northland Capital Markets analysts increased their price target for the company to $20 from its previous target of $12, while reiterating an Outperform rating.
Overall, APLD ranks 8th on our list of the best US stocks under $10 to buy right now. While we acknowledge the growth potential of APLD, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
