Applied Digital rallies after Needham names AI infrastructure top pick - InvestingChannel

Applied Digital rallies after Needham names AI infrastructure top pick

Applied Digital shares are moving higher after Needham analyst John Todaro earlier today reiterated a Buy rating on the stock with an $11 price target. The shares in afternoon trading are up 10%, or 42c, to $4.80. The artificial intelligence/high performance computing opportunity for bitcoin miners is a growing tailwind for the sector, the analyst told investors in a research note. The firm says the miners have access to 6GW-plus of capacity in their near-term pipeline, which is an attractive backdrop for what Needham expects will be a coming shortage in high performance computing data centers. Needham prefers operators with power in northern, colder climates with adequate fiber connectivity. Applied Digital’s sites are suitable for this and construction is already underway on a 100MW high performance computing site in North Dakota, contends the analyst. Needham calls Applied Digital its top pick for artificial intelligence/high performance computing infrastructure.

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