Applied Digital (APLD) Jumps 14% on AI Optimism

We recently published 10 Big Names With Easy 10-30% Gains. Applied Digital Corp. (NASDAQ:APLD) was one of the best performers on Tuesday.

Applied Digital grew its share prices by 14.29 percent on Tuesday to close at $41.35 apiece amid positive developments surrounding the artificial intelligence industry, including higher funding from key players.

Applied Digital Corp. (NASDAQ:APLD) rallied alongside its counterparts, namely IREN Ltd., TeraWulf, and Cipher Mining, among others, following news that Nvidia Corp. invested $2 billion in CoreWeave, reflecting optimism for the sector despite analysts’ concerns of an AI bubble.

Additionally, a US-based AI firm, Anthropic, was said to have raised as much as $15 billion in fresh funds to finance its expansion program.

According to reports, Coatue and Singapore sovereign wealth fund GIC supported the fundraising program, while Sequoia Capital—an investor in Anthropic’s rival, OpenAI—also shelled out for the startup.

Recent fundraising programs sparked rosy prospects for listed data center operators and high-performance computing companies such as Applied Digital Corp. (NASDAQ:APLD) on expectations that AI companies’ ongoing expansion plans could bolster demand for their services.

Applied Digital Corp. (NASDAQ:APLD), for its part, is underway with the construction of its new 430-megawatt data center in Dallas, Texas. The facility will feature two 150-MW facilities on a 500-acre land area.

Once fully operational, Applied Digital Corp. (NASDAQ:APLD) expects to generate more than 200 jobs, in addition to long-term contractors.

While we acknowledge the potential of APLD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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