Following Strong Q4 and Major Contract, Applied Digital Advances

Applied Digital Corporation (NASDAQ:APLD) is one of the 11 Best Short Squeeze Stocks to Buy Now.

The company receives a strong Buy rating amid the positive Q4 2025 earnings results and bold sales from the company’s top executives.

Texas-based company, Applied Digital Corporation (NASDAQ:APLD), designs, builds, and operates next-generation digital infrastructure tailored for high-performance computing and AI workloads. The company’s focus is on offering purpose-built data center hosting, cloud services, and HPC solutions, among other services.

Applied Digital Corporation (NASDAQ:APLD) released its Q4 2025 earnings results on July 30, 2025. The report highlighted a 41% year-over-year revenue growth to $38 million during the quarter. Notably, the company has also secured a 15-year, $7 billion lease agreement with a major player in the AI data centre. With this contract, the company anticipates a significant stronghold in the high-performance computing sector. Applied Digital Corporation (NASDAQ:APLD) also announced its expansion plans to reach a 2GW capacity by 2026, thus gaining a positive outlook among potential investors.

In the weeks following the Q4 2025 earnings report, Applied Digital Corporation (NASDAQ:APLD)’s Directors were seen engaging in bold sales of the company’s stock. For instance, Douglas S. Miller and Richard Nottenburg sold 10,000 and 11,250 of the company’s shares, respectively. On the other hand, CNN recorded 9 analysts giving a consensus Buy rating on the stock, with an upside potential of 20.24%.

An intense short pressure is noticeable with the company’s short float of 32.70%, making the stock highly susceptible to sharp rallies if sentiment reverses.

While we acknowledge the potential of APLD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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