Is Applied Digital Stock Going to $0?
Applied Digital (NASDAQ: APLD) has turned into one of the market's hottest growth stocks in recent years. After the data center operator pivoted from a focus on providing infrastructure for crypto miners to building infrastructure to support artificial intelligence (AI), its share price has absolutely exploded.
But while the AI-first strategy has created an enormous opportunity, the company is walking a fine line, and any slip-up could turn this growth stock into dead weight in your portfolio.
Applied Digital builds and operates data centers specifically designed for AI workloads, and leases the facilities to tenants that actually run the servers that power AI. Think of it as a specialized real estate developer and landlord -- it finds the land, builds the facilities, and keeps the lights on and the AC running.
Source Fool.com
