Applied Digital Stock Rallies After Price-Target Upgrade On Surging Cloud Services Demand: Retail Remains Bullish

Shares of Applied Digital Corp. (APLD) gained nearly 12% in morning trade on Thursday after the company reported a smaller-than-expected loss on demand for cloud services, prompting a price-target hike.

According to a report by TheFly, analysts at H.C. Wainwright increased their price target for Applied Digital to $12 from $10, implying an upside of nearly 27.66% from the current price.

In their latest note, Wainwright analysts maintained a “Buy” rating on the shares after the company’s Q2 results and “pivotal” financing deal with Macquarie Asset Management.

Earlier this week, Applied Digital surpassed analyst expectations, reporting lower than expected loss for Q2. The company posted an adjusted net loss of 6 cents per share, lower than the expected loss of 15 cents per share for the quarter ended Nov. 30.

In a recent poll, 39% of retail investors on Stocktwits said that investments from Nvidia Corp. (NVDA) and other key players are the most important drivers of Applied’s growth.

The company is an AI infrastructure partner for Nvidia and provides high-performance computing (HPC) data centers for the Jensen Huang-led company.

Retail sentiment on Stocktwits entered the ‘bullish’ (70/100) territory after being ‘extremely bullish’ (83/100) a day ago. Message volume declined from ‘extremely high’ (85/100) to ‘high’ (61/100) zone.

A user termed this as an “opportunity you do not want to miss.”

Applied Digital’s stock price has gained nearly 35% in the last six months, while its one-year gains stand at 65%.

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