Nvidia backing ‘endorsement of Applied at the highest order,’ says Craig-Hallum

After Applied Digital (APLD) raised $160M at the market in a financing that included “two very prominent strategic investors,” Craig-Hallum argues that “the granddaddy of them all in AI, NVIDIA, is obvious, and moves the company into a higher realm of the AI ecosystem than most investors (in particular the skeptics) appreciate.” The investment by Related Companies, a real estate player based in Miami with an interest in the AI infrastructure space, is “perhaps less obvious,” but as the company continues to pursue AI facilities it will likely need project-level financing from groups like Related, making this investment “a significant step in the right direction,” the analyst tells investors. Craig-Hallum maintains a Buy rating and $10 price target on shares of Applied Digital, which jumped $2.13, or 66%, yesterday to close at $5.37.