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Nvidia's largest holding, Applied Digital Corporation (APLD), is poised for long-term growth, particularly in powering artificial intelligence applications. The company is building a major data center campus, backed by substantial financing, and aims to meet the increasing demand for AI infrastructure. With a significant share of Nvidia's portfolio allocated to APLD, the speaker believes this stock presents a lucrative long-term investment opportunity, forecasting prices between $20 and $50 per share. APLD's key role in the AI landscape and recent market movements suggest its potential for substantial gains.
Elon Musk's xAI model shows an 80% chance of being the best AI by February.
Powering AI requires large amounts of electricity and advanced data storage solutions.
APLD's new data center will support diverse AI applications and power requirements.
APLD secured $375 million for their data center, ensuring project viability.
The potential for APLD to drive AI applications hinges on its data center capabilities. The immense energy and storage requirements for AI workloads necessitate cutting-edge infrastructure, as highlighted with Tesla's recent advancements under Elon Musk. With global AI demand surging, APLD's investment in high-performance computing may position it at the forefront of an essential growth sector.
In light of Nvidia increasing its investment in APLD, the market should watch closely as institutional ownership rises. The 28% short interest suggests heightened volatility while potential short squeezes remain a real possibility if APLD capitalizes on its new funding to establish itself firmly in the AI arena. Given industry trends, projecting price targets of $20 to $50 seems optimistic yet plausible as the company's data center operations ramp up.
APLD operates data centers to support AI infrastructure.
APLD's role centers on powering AI applications.
APLD's new HPC campus will focus on AI processing needs.
APLD is heavily tied to Nvidia's advancements in AI infrastructure, with Nvidia increasing its stake in APLD recently.
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The company is building a significant data center campus to cater to growing AI demands.
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