Meet Applied Digital (APLD.O) overshoot market predictions with an ambitious forecast of their annual revenue. When the words “artificial intelligence” are floating around, one can hardly feign surprise.
This increased market demand for AI-driven data center services has boosted the company’s shares by a staggering 18% in the early hours of trading. To put that into perspective, imagine if your morning coffee suddenly became 18% stronger – how’s that for a jolt to the system?
Data storage and high-power computing systems (HPC) have become the bread and butter of modern business. Both, enterprises and end users alike, are flocking towards generative AI applications. Look no further than ChatGPT, an AI application for tasks ranging from school assignments to crafting perfect email responses.
Earlier this year, Applied Digital launched its AI cloud offering, the proverbial new kid on the block. It’s already raking in the contracts, including a deal potentially worth $180 million with Character A.I.
CEO Wes Cummins put it plainly, “We will accelerate our focus on non-crypto use cases and leverage capabilities of our next-generation proprietary data center assets for HPC applications.”
Projected annual revenue stands between $385 million to $405 million, juxtaposing neatly against analysts’ modest average expectations of $308.8 million. Just to underline, that’s akin to showing up at a 5k run and finishing a marathon instead.
For the uninitiated, the company reported revenue of $22 million for the three months to May 31. Yes, that’s less than the average analysts’ estimate of $26.4 million, but let’s remember Rome wasn’t built in a day.
In the same period, its loss per share went up to 7 cents from last year’s 4 cents. But let’s not cry over spilled milk. After all, even the biggest trees start as tiny seeds.
Now, let’s see where this ambitious journey takes Applied Digital. After all, it’s not about where you start but where you finish.
