Applied Digital is positioned for significant growth with a 15-year take-or-pay contract backlog and expanded opportunities valued up to $85.66 billion in high-performance computing (HPC). The company’s capacity is expected to grow from 100 MW in late 2026 to a backlog of 1,410 MW by 2028, highlighting rapid expansion. Despite a recent stock price drop, its FY2029 EV/Sales ratio of 4.75x is attractive compared to major hyperscalers. However, risks such as high short interest, negative free cash flow, increasing net debt, and ongoing equity dilution make it suitable mainly for long-term, contrarian investors. The stock is initiated as a buy due to oversold technicals and potential bottoming based on historical trends.
Applied Digital, Cipher Mining, and Core Scientific stocks fell 3-6% due to rising long-term Treasury yields, which increase the cost of financing for capital-intensive AI data center buildouts. This selloff reflects concerns over higher borrowing co...
IREN Limited's stock fell sharply after reporting a $684 million loss, mainly due to non-cash write-downs from its Bitcoin mining hardware. Despite this, Bernstein analyst Gautam Chhugani set a high price target of $100, implying about 182% upside, b...
IREN Limited reported a $638.8 million impairment on older Bitcoin mining equipment, causing its stock to drop 13% and triggering a selloff among AI data center peers like Applied Digital and TeraWulf, which fell around 7%. Despite strong revenue gro...
