Applied Digital price target lowered to $11 from $13 at Needham

Needham lowered the firm’s price target on Applied Digital to $11 from $13 but keeps a Buy rating on the shares. The company’s Q3 earnings miss was driven by the timeline between receiving GPUs and recognizing revenue, the analyst tells investors in a research note. Applied Digital management has also emphasized a shift from Cloud AI compute to the HPC build-out, and as such, Needham has significantly lowered its estimates for GPUs being brought online in FY25, especially as this ramp has been “considerably slower than initially expected”, the firm added.