Applied Digital: The AI Selloff May Have Created a 159% Opportunity in This Under-$30 Stock

Artificial intelligence (AI) has created no shortage of stock market winners over the past two years. Even though the market has again become cautious about large-scale AI capex spending, that doesn’t mean the long-term opportunities of AI have disappeared. In fact, market phases like these often create a disconnect between a company’s share price and the progress of its underlying business.

Applied Digital (APLD), an AI infrastructure specialist, is a prime example. The company is expanding at an extraordinary pace, yet the stock has been whiplashing lately. APLD stock is down 26% in the past month, but, thanks to today's spike, is now back in the green by 13% year-to-date (YTD). The recent weakness appears to reflect a broader selloff in AI infrastructure stocks and risk-off market sentiment, rather than a deterioration in the company's financials, which remained robust in the most recent quarter.