We recently compiled a list of the 10 Best Blockchain Stocks to Buy According to Analysts. In this article, we are going to take a look at where Applied Digital Corporation (NASDAQ:APLD) stands against the other best blockchain stocks.
The blockchain market is experiencing various trends that continue to shape its future and expand the technology’s use cases across a range of sectors. The blockchain technology offers significant benefits, such as transparency and efficiency. According to a report by The Business Research Company, the global blockchain market was valued at $28.93 billion in 2024. The market is expected to grow significantly at a compound annual growth rate (CAGR) of 44.9% during 2025-2029 to reach a value of $216.82 billion by the end of the forecast period.
Crypto mining is also becoming very attractive and profitable, especially as the price of cryptocurrencies rises. Crypto mining companies verify and add transactions to the blockchain networks and earn crypto as rewards. Bitcoin reached a new high of $109,000 on January 20 and Bitcoin mining is becoming increasingly popular. As a result, there is an increase in demand for advanced infrastructure, such as data centers and mining equipment. This is driving investment in blockchain technology and services.
However, not all blockchain companies are focused on mining cryptocurrencies. Some of the companies involved in the blockchain space develop applications, provide services, or create new use cases by utilizing blockchain technology.
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Blockchain stocks may benefit greatly from the anticipated changes in US regulations under Trump’s administration and experts believe this may lead to a surge in institutional interest and investment in blockchain and crypto stocks.
Trump recently launched the “Official Trump” meme coin, which had risen to over a $10 billion market cap by the morning of January 20, according to CoinGecko, as reported by CNBC. Additionally, returning First Lady Melania Trump has also launched her own “Melania” meme coin.
Gracy Chen, CEO of crypto exchange Bitget, told CNBC that rumors about cryptocurrency being declared a national interest by the US have positively influenced the price of Bitcoin. She noted that the rise in Bitcoin’s price is not because of the launch of new meme coins. Instead, Chen said that without the release of the Trump family meme coins, Bitcoin’s price would have increased more as capital would not have shifted to new coins to limit overall growth.
Joel Kruger, market strategist at LMAX, believes that the coin launches by the Trump family gave traders further conviction that the new administration will be positive for the industry.
Methodology
To compile our list of the 10 best blockchain stocks to buy according to analysts, we looked for blockchain companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best blockchain stocks. Next, we focused on the top blockchain stocks that analysts believe have the most potential for growth. We ranked the 10 best blockchain stocks to buy based on their average price target upside potential according to analysts as of January 31, 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.
Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An overhead view of a large-scale data center with rows of servers and blinking lights.
Applied Digital Corporation (NASDAQ:APLD)
Average Price Target Upside Potential According to Analysts: 54.49%
Number of Hedge Fund Holders: 26
Applied Digital Corporation (NASDAQ:APLD) is a company that designs, develops, and operates next-generation data centers across North America. The company provides digital infrastructure solutions for blockchain mining operations and GPU computing solutions for critical workloads related to artificial intelligence (AI) and other high-performance computing (HPC) tasks. Applied Digital Corporation (NASDAQ:APLD) is one of the best blockchain stocks to buy according to analysts.
The company is strategically focused on expanding its HPC business. Applied Digital Corporation (NASDAQ:APLD) is developing a 400-megawatt campus in Ellendale, North Dakota. In December 2024, the company successfully energized the main substation transformer. Applied Digital Corporation (NASDAQ:APLD) expects that the facility will have 100 megawatts of critical IT load available in 2025.
Additionally, on January 14, Applied Digital Corporation (NASDAQ:APLD) announced a strategic partnership with Macquarie Asset Management, the asset management division of Macquarie Group. Macquarie Group will invest up to $900 million in the company’s HPC data center facility in North Dakota. The Australian investment bank will be able to invest up to another $4.1 billion in the HPC data centers that APLD builds in the future. Under the partnership agreement, Applied Digital Corporation (NASDAQ:APLD) will retain an 85% stake in its HPC assets while possibly gaining as much as $5 billion in funding to enhance its operations. This investment will help Applied Digital Corporation (NASDAQ:APLD) to establish itself as a top-tier HPC data center designer, builder, and operator in the US.
Overall, APLD ranks 8th on our list of the best blockchain stocks to buy according to analysts. While we acknowledge the potential of APLD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher 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.
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Disclosure: None. This article is originally published at Insider Monkey.