Small-cap stock %AppliedDigital (NASDAQ: $APLD) is a way for investors to play the boom in %ArtificialIntelligence data centres.
APLD stock recently jumped 15% in a single trading session after the company announced plans to build a $3 billion U.S. A.I. data centre campus in North Dakota.
Construction on the A.I. campus is expected to begin this September and help the company meet surging demand for computing power.
The new campus is being built on 900 acres, and once fully operational in 2027, it is expected to create 200 full-time jobs and house 280 megawatts worth of data centres.
The new campus builds on Applied Digital’s existing facilities that are already located in North Dakota.
Applied Digital designs, builds, and operates data centres that are focused on A.I., cloud computing, and blockchain workloads.
The company operates in the hottest area of technology right now, and that fact is reflected in APLD stock, which is up 101% this year. In the last 12 months, the stock has gained 274%.
Yet for all its success, Applied Digital remains a small-cap stock with a market valuation of only $4.10 billion U.S.
The new campus in North Dakota is being built as demand for A.I. computing accelerates at a blistering pace, driven by demand from hyperscalers, enterprises, and research organizations.
Applied Digital has hinted that it might lease its new data centres to mega-cap technology companies and hyperscalers that include Microsoft (NASDAQ: $MSFT) and %MetaPlatforms (NASDAQ: $META).
In the meantime, investors looking for exposure to the data centre boom might consider this small-cap concern.
