Should I Buy Applied Digital (APLD)? — Finance YouTuber Analysis

The YouTuber recommends Applied Digital, a data center developer focused on AI workloads, due to its substantial contracted lease backlog ($23 billion vs. $13 billion market cap), indicating it's undervalued. He points to a recent 15-year, $7.5 billion deal with a hyperscaler and the strategic spin-off of Chronoscale as positive developments for future growth.

“Applied Digital's market cap sits at roughly $13 billion, but their contracted lease backlog tops $23 billion. The company is priced at less than half the value of the contracts that are already signed.” — ▶ 01:05:48

The YouTuber is bullish on Applied Digital (APLD), an infrastructure provider for high-performance computing and AI data centers. He highlights the company's shift from crypto to AI compute, focusing on large-scale data center campuses with high-density power environments crucial for GPU clusters. He believes APLD is solving the bottleneck of electricity, cooling, and physical infrastructure for AI, and that the market will eventually value it as a strategic AI infrastructure play. He has a price target of $70 per share.

“I have a price target on APLD of $70 per share. Apply digital is basically building infrastructure for high performance computing and AI data centers.” — ▶ 24:40

The YouTuber advises caution with Applied Digital, categorizing it as a 'story that needs to become a business fast.' Despite some positive metrics, its lack of profitability and high debt levels make it a risky proposition that could lead to dilution, suggesting it's not a recommended tactical play at this time.

“Apply digital and coreweave are stories that need to become businesses fast.” — ▶ Watch clip