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We were reviewing this year’s biggest winners when Lee immediately mentioned Applied Digital. I remembered when we first discussed it, a small firm that had turned away from crypto mining and into AI infrastructure. At the time, the market barely noticed. Today, it stands as one of the clearest examples of how a strategic pivot in the right sector can pay off quickly.
A Turnaround Story with Perfect Timing
Lee explained that Applied Digital’s pivot came just as the artificial intelligence infrastructure market was accelerating. The company stopped chasing volatile crypto revenue and began constructing high-performance data centers designed for AI workloads. That shift aligned perfectly with surging enterprise demand.
CoreWeave Deal Changes the Game
What really transformed Applied Digital’s outlook was its contract with CoreWeave, an AI cloud provider. The multi-year agreement, reportedly valued at up to $11 billion, positioned the company as a key infrastructure partner in one of the fastest-growing segments of the tech industry. As Lee said, “When you get a big order from somebody like CoreWeave, then you’re looking good.”
A Stock That Soared from $5 to $40
We initially recommended APLD when it traded around $5. It climbed steadily through the spring and hit $40 earlier this week, an eightfold increase. Lee noted that the stock has faced short-term selling pressure near that milestone and some sympathy declines alongside Bitcoin, even though crypto now plays a minimal role in Applied Digital’s business.
Focusing on Quality Opportunities
As Lee reminded me, the goal at 24/7 Wall St. is not to chase speculative penny stocks but to find credible companies with catalysts for sustainable growth. Applied Digital’s pivot from crypto to AI infrastructure is exactly that kind of story, a calculated reinvention that aligned with one of the most powerful technology trends of the decade.
Transcript:
[00:00:04] Douglas: Lee we’ve made people some money if they took our advice. You’ve got one of the tech sleepers that we happen to be right on.
[00:00:14] Lee Jackson: You know, it was funny. I was intrigued by Applied Digital, which is
[00:00:18] Lee Jackson: symbol APLD.
[00:00:20] Lee Jackson: Earlier this year I started to read about ’em and they were kind of a turnaround sort of business that used to be crypto miners and crypto guys, and then they said, okay, forget it. You know, we’re going to go the route of, needed an AI centric, data centers, and they’ve become, it’s just exploded higher on the fact that they have huge, huge, you know, usage deals with Core Weave, which go as high as 11 billion on a few year period. And, you know, we didn’t know it back then, but this is what we had to say, earlier this year when we recommended Applied Digital.
[00:00:59] Douglas: So if you had to make the same decision today, what would you say?
[00:01:04] Lee Jackson: In terms of applied digital, I think it’s a, now it’s gotten stuck pretty hard here at the end of this trading week, you know, it, it went well. Again, we recommended the stock like five. It hit 40. Earlier this week, and obviously when you hit a a milestone number like that, which is above old market highs, you’re always gonna catch sellers.
[00:01:26] Lee Jackson: And, it’s, it’s kind of sold off some with Bitcoin selling off, although I don’t think Bitcoin mining is a big part of their operation again. But what we’re gonna do is, what we’re gonna continue to do for our viewers and our readers at 24 7 Wall Street is to find solid ideas, not. Penny stock crap. But, you know, solid ideas, even if they don’t make money.
[00:01:48] Lee Jackson: But uh, when you get a big order from somebody like CoreWeave, then you’re looking good and, and I’m sure there’ll be more on the on, on the backend for them.
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