Shares of designer, builder, and operator of digital infrastructure, Applied Digital Corp. (NASDAQ: APLD) were on a downward trajectory in pre-market trading at the time of publishing on Monday even as the company announced that it has secured its second artificial intelligence (AI) customer with an agreement worth up to $460 million over a period of three years. This announcement comes even as the company recently launched its AI Cloud Service, through its wholly-owned subsidiary Sai Computing.
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The company has already signed its first AI customer with an agreement worth up to $180 million over a period of two years.
This news comes even as the company’s CEO and Chairman, Wes Cummins has been embroiled in a controversy. Earlier this month, an audit committee conducted an internal investigation regarding a sexual harassment claim against Cummins. According to the company’s filing, this claim was a “threat, but not a formal assertion” and the audit committee’s investigation “determined that the relationship between the parties was consensual and the allegations of workplace harassment are unfounded.”
Analysts are bullish about APLD stock with a Strong Buy consensus rating based on seven unanimous Buys.