Why Applied Digital Corporation (APLD) Is Skyrocketing

We recently compiled a list of the 10 Firms Shine Amid Wall Street’s Lackluster Trading. In this article, we are going to take a look at where Applied Digital Corporation (NASDAQ:APLD) stands against the other stocks.

A lackluster trading persisted throughout Thursday, with Wall Street’s main indices ending the day with only marginal changes.

The Dow Jones Industrial Average dipped by 0.16 percent, while the S&P 500 shed 0.21 percent, and the Nasdaq Composite declined by 0.89 percent.

Meanwhile, 10 companies bucked an overall dull trading, having posted impressive gains. Let’s take a closer look at the top performers and explore the factors driving their exceptional results.

To come up with Thursday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

An overhead view of a large-scale data center with rows of servers and blinking lights.

Applied Digital Corporation (NASDAQ:APLD)

Applied Digital Corporation (NASDAQ:APLD) grew for a second day on Thursday, ending the day up by 7.29 percent at $8.98 each after earning a price target upgrade from investment research firms.

In a recent report, analysts at HC Wainwright increased their price targets for Applied Digital Corporation (NASDAQ:APLD) to $12 from $10 previously, while maintaining a “buy” rating on the stock.

Analysts said their recent upgrade was based on the “pivotal” financing deal with Macquarie Asset Management while reporting better earnings performance, having narrowed its losses by 60 percent to only 6 cents loss per share for the second quarter versus the 15 cents loss per share reported in the first quarter.

The optimistic outlook for the company was further buoyed after Lake Street Capital Markets maintained its “buy” rating and $11 price target for the company, citing the firm’s second-quarter performance that beat analyst expectations.

Overall APLD ranks 6th on our list of the stocks that skyrocketed today. While we acknowledge the potential of 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.

READ NEXT: 20 Best AI Stock To Buy Now and 30 Most Important AI Stocks According to BlackRock

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