Data centers remain critical to the artificial intelligence boom. Outside the Big Tech companies, several players also play an important role in helping to sustain the rise of AI infrastructure and innovation.
Claim 30% Off TipRanks
Trade APLD with leverageThis article highlights three names that have impressive upside potential from Wall Street analysts. The stocks are:
ServiceNow (NOW)
ServiceNow is a cloud‑based company that provides an enterprise workflow platform that empowers organizations to execute tasks such as automating their workflow, running performance analytics, and deploying artificial intelligence and machine learning.
Shares in the California-based company ServiceNow have plunged about 37% year-to-date as fears of AI rendering the traditional software sector obsolete have gripped investors. Nonetheless, NOW stock continues to enjoy a Strong Buy consensus rating from analysts and boasts of about 74% upside based on an average price target of $168.13.
Credo Technology (CRDO)
Credo is a U.S. semiconductor company that designs and provides high-speed connectivity products such as integrated circuits, active electrical cables, and SerDes chipsets that are essential in linking servers at data centers for high-throughput data transfer.
The company’s shares have rallied this week following a bullish call from Jefferies that flagged investors’ misinterpretation of the company’s position to tap into the AI boom. The rally also rode on news that Credo plans to acquire Israeli silicon photonics developer DustPhotonics in a $750 million deal.
As of Friday afternoon, Credo’s shares have only gained about 8% year-to-date. However, analysts on Wall Street consider the stock a Strong Buy, with their average price target of $203 implying roughly 31% upside in the months ahead.
Applied Digital Corporation (APLD)
Applied Digital is a digital infrastructure company that designs, builds, and operates AI factories for high-performance computing and managed cloud services. It offers customers access to graphics processing units required for demanding AI workloads.
The Texas-based company started out as Applied Blockchain and continues to specialize in cryptocurrency mining equipment.
On Wall Street, APLD is also rated a Strong Buy based on analysts’ consensus. This comes with an average price target of $46 that implies about 49% upside from current trading levels.
