Jim Cramer’s Lightning Round: 7 Stocks to Watch

5. Applied Digital Corporation (NASDAQ:APLD)

Number of Hedge Fund Holders: 26

When a caller asked about Applied Digital Corporation (NASDAQ:APLD), Cramer said:

“Yes, you know, look, this [is] high-performance computing and you know, when I see high-performance computing, I think about a stock that everybody suddenly hates again and that’s the stock of Nvidia. And I’m not backing away from Nvidia. It’s actually been very good to my Charitable Trust and everybody else in the world.”

Applied Digital (NASDAQ:APLD) designs, develops, and operates digital infrastructure solutions, providing cloud services and high-performance computing for industries such as AI, machine learning, and crypto mining. With the rapid expansion of AI technologies, the company believes it is in a favorable position to provide advanced data center solutions and GPU cloud services to meet the growing demand.

In September, it raised $160 million through a private placement, a transaction in which shares are sold directly to investors instead of being offered on the open market. According to the company, it issued 49.38 million shares, and among the investors were Nvidia Corp. and Related Companies LP, a prominent real estate developer.

In addition to the lease agreement with a U.S.-based hyperscaler for its 100 MW facility that it highlighted during the first quarter of fiscal 2025 earnings call, Applied Digital (NASDAQ:APLD) management indicated that interest in the company’s data center offerings has significantly increased, with three additional hyperscalers expressing strong interest in securing capacity for 2025 and 2026.

This uptick in demand has driven the company to focus on expanding its capacity for these two years, and they noted that the 2025 capacity is essentially sold out. The company’s 100 MW facility in Ellendale, North Dakota, is expected to fulfill much of the demand for 2025, with additional efforts underway to secure a lease for another location, likely in the Dakotas, through a Letter of Intent.