Roth Capital says Applied Digital remains ‘a top pick,’ buy on weakness

Roth Capital says Applied Digital’s (APLD) Q3 was a true inflection quarter with the first steady-state HPC lease revenue from its first 100MW building, while there is still some noise with technical fit out and on the re-contribution from the AI cloud business. The more important development was the CoreWeave (CRWV) lease restructuring disclosed on March 30, which amended the ELN-02/03 leases to flow through a CoreWeave SPV that received an A3 rating, the firm notes. On the pipeline, there was no major lease announcement, but Roth believes fundamentals are strengthening. The firm expects key near-term catalyst in a DF lease and a new tranche of debt but would use weakness to accumulate shares, as Applied remains a top pick. Roth has a Buy rating on the shares.

Claim 55% Off TipRanks