Shares of high performance computing and artificial intelligence company Applied Digital Corporation (NASDAQ: APLD) leapt 65 per cent on Thursday after a group of investors agreed to invest USD$160 million.
This combination of strategic investment, market alignment with tech trends, and the endorsement from a tech giant like NVIDIA (NASDAQ: NVDA) has driven Applied Digital’s stock price upward, reflecting heightened expectations for its future performance in the AI and data center market.
The company plans to use this funding to further expand its data center capacities. This move aligns with the increasing demand for AI and cloud computing services.
“Applied Digital was built on its ability to identify market demands, and we believe our collective philosophy, technical expertise, and long-standing industry experience have brought us to our current place of strength that will carry us and our hyperscale customers securely into the AI and HPC future,” said Wes Cummins, CEO and chairman at Applied Digital.
The significant price movement reflects strong investor optimism about the company’s growth potential, especially in scaling its AI and cloud offerings. The tech sector is witnessing significant investment and growth, making Applied Digital an attractive investment as companies and investors seek infrastructure to support the burgeoning AI and big data industries.
The company leverages its deep bench of hyperscale talent, specialized access to a robust pipeline of stranded power, and advanced infrastructure technologies like closed-loop liquid cooling to deliver a proprietary, purpose-built, hyper-efficient platform for the world’s most advanced HPC and AI workloads.
Current projects also include building one of the world’s largest data centers and developing an additional 300MW of data center capacity.
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Big tech firms capitalize on AI trend in unique ways
The AI and data center market is experiencing substantial growth due to the increasing demand for more powerful computing resources for AI applications. Companies like NVIDIA, Microsoft Corporation (NASDAQ: MSFT), and Palantir are capitalizing on this trend in distinct ways: NVIDIA focuses on hardware, Microsoft on cloud services, and Palantir on specialized software.
For example, optimism surrounds NVIDIA because of its role in AI hardware, evident in its stock performance with positive after-hours movements following strong earnings from data center and AI growth.
Additionally, Microsoft remains a leader in enterprise cloud solutions, with Azure’s growth driving this perception and reflecting confidence in its diversified tech portfolio, including advancements in AI and cloud computing infrastructure.
Meanwhile, growing interest in Palantir stems from its specialized data analytics offerings, which become increasingly crucial as companies seek to leverage AI for business intelligence. While Palantir does not engage directly in hardware like NVIDIA or broad cloud services like Microsoft, its software solutions complement the broader AI and data center ecosystem.
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