Is Applied Digital (APLD) the Next Big AI Stock? What Investors Need to Know

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Applied Digital (NASDAQ: APLD) has been making headlines with its recent stock surge, fueled by significant investments and increasing demand for high-performance computing (HPC) infrastructure.

With AI-driven businesses seeking powerful data processing solutions, Applied Digital is positioning itself as a key player in the industry. But is APLD the next big AI stock? Here’s what investors need to know.

Stock Surge and Investment Influx

On February 14, 2025, Applied Digital’s stock soared by approximately 15%, closing at $9.11.

This sharp rise followed the announcement of a $5 billion investment from Macquarie Asset Management, with an initial $900 million allocated for the expansion of its North Dakota data center.

The deal grants Macquarie a 15% equity stake in Applied Digital’s HPC division while the company retains 85% ownership.

Adding to investor confidence, Nvidia (NASDAQ: NVDA) has maintained its investment in Applied Digital, according to recent regulatory filings. With AI computing requirements skyrocketing, this strategic backing from Nvidia further reinforces Applied Digital’s growth trajectory.

AI Infrastructure: A Booming Sector

Applied Digital specializes in HPC data centers optimized for AI workloads, cloud computing, and blockchain applications.

As AI adoption accelerates across industries, the demand for high-efficiency, scalable, and cost-effective data center solutions is growing.

Companies like OpenAI, Google, and Meta rely on advanced infrastructure to power their AI models, making firms like Applied Digital crucial to this ecosystem.

Additionally, the AI sector is projected to grow exponentially, with global AI computing spending expected to reach $400 billion by 2030. This places companies involved in AI infrastructure in a favorable position for long-term expansion.

Competitive Positioning and Growth Potential

Compared to tech giants like Amazon Web Services (AWS) and Microsoft Azure, Applied Digital focuses specifically on AI-centric data processing.

This niche positioning allows it to cater to the specialized needs of AI startups and enterprises. The recent strategic partnership with Macquarie provides substantial capital to accelerate expansion, further strengthening its competitive edge.

Moreover, Applied Digital’s asset-light business model helps maintain operational flexibility while benefiting from high-margin services. By leveraging advanced cooling and energy-efficient solutions, the company aims to enhance profitability while addressing sustainability concerns.

Risks and Considerations for Investors

Despite its promising outlook, investing in Applied Digital comes with certain risks. The AI and data center industries are highly competitive, with major players like Nvidia, AMD, and Microsoft dominating the market. Applied Digital must continually innovate to maintain relevance.

Additionally, fluctuations in energy costs and regulatory policies surrounding data centers could impact profitability. Investors should monitor the company’s ability to scale operations efficiently while managing costs.

Final Verdict: Is APLD the Next Big AI Stock?

Applied Digital has positioned itself as a rising force in the AI infrastructure space, with strong financial backing and a growing demand for its services. While it may not yet rival the biggest names in the industry, its recent partnerships and rapid expansion suggest it has the potential to become a major player in AI computing.

For investors looking to gain exposure to the AI data center boom, APLD could be a high-growth opportunity—but as with any investment, thorough research and risk assessment are essential.