Applied Digital Inc. (NASDAQ: APLD) designs and operates purpose-built artificial intelligence (AI) data centers. The computer and technology sector company originally provided cryptocurrency mining hosting services, as Applied Blockchain provided hosting services for one of the largest bitcoin miners, MARA Holdings Inc. (NASDAQ: MARA). In 2022, Applied made a strategic pivot along with a name change to focus on hosting artificial intelligence (AI) and high-performance compute (HPC) workloads and infrastructure.
Applied Digital stock surged from the hype of the AI data center buildout trend, but has tanked as the company’s results haven’t lived up to the hype yet. Let’s explore whether there is any substance to the sizzle and whether this pullback is an opportunity or a falling knife to avoid.
