- Applied Digital Corp (NASDAQ:APLD) shares are up Tuesday after APLD’s AI Cloud Service, through its wholly-owned subsidiary Sai Computing, bagged its first major AI customer with a deal of up to $180 million over 24 months.
- The customer will make a significant pre-payment under the agreement. The service will likely start coming online this June and fully ramp up by the end of the year.
- Needham analyst John Todaro maintains APLD with a Buy and raises the price target from $3.7 to $5.5.
- The analyst is excited about APLD’s AI and Web3 expansions.
- He estimates a $175 million – $220 million annual revenue opportunity for a 100MW HPC site.
- Yesterday APLD announced the expansion of its HPC “starter” site to 9MW from 5MW and the launch of its AI cloud offering, Sai Computing.
- The company expects ~90% of CY23 revenue from BTC mining hosting, but APLD is shifting its focus for future sites to almost exclusively HPC.
- He believes there’s a healthy demand backdrop given rising competing AI-based applications.
- The price target boost also reflects an improved mining backdrop for its tenants.
- As HPC customers onboard, the analyst expects further multiple expansions on revenue diversification, revenue stability (7-10 year contracts vs. 5-year), and more levers to pull to increase EBITDA margin over time.
- Price Action: APLD shares traded higher by 56.70% at $5.35 on the last check Tuesday.
Reported Late Wednesday, DZS Announces Pricing Of ~$28.8M Public Offering Of ~3,377,315 Shares At A Price Of $11.50/Share; 2,507,750 Shares Are Being Offered By The Company And 869,565 Shares Are Being Offered By The Selling Stockholder
DZS Inc. (NASDAQ:DZSI) (the "Company" or "DZS"), a global leader in access and optical edge infrastructure and cloud software solutions, today announced that it has priced an underwritten registered
