Shares of Applied Digital surged on Tuesday following the announcement of a significant investment by Macquarie Asset Management, which will invest up to $5 billion in Applied Digital’s high-performance computing (HPC) data centers. This move highlights the increasing demand for advanced digital infrastructure, particularly for artificial intelligence (AI) and high-performance computing applications.
In addition to Macquarie’s investment, Nvidia (NVDA) has already invested in Applied Digital’s data centers, signaling growing interest from major players in the tech and AI sectors. The collaboration with Macquarie is set to accelerate Applied Digital’s plans for expanding its HPC capabilities.
Details of the Investment
Macquarie will initially commit up to $900 million to Applied Digital’s Ellendale HPC data center campus located in North Dakota. This investment is part of a larger deal where Macquarie will have the option to further invest up to an additional $4.1 billion across Applied Digital’s future HPC data center projects.
Macquarie will take a 15% equity stake in Applied Digital’s HPC business, with the remaining 85% staying under the control of the AI company. This partnership enhances Applied Digital’s capacity to support high-performance computing and AI-driven workloads, which have seen tremendous growth in recent years.
Applied Digital’s Stock Surge
The announcement of this investment sparked a notable rise in Applied Digital’s stock price. Shares of the company jumped 16%, reaching a value of $9.05 per share on Tuesday. Over the past year, Applied Digital shares have gained 20%, further highlighting the positive market sentiment surrounding the company’s prospects.
Looking Ahead
As Applied Digital prepares to report its second-quarter fiscal 2025 results later today, the company’s future prospects seem increasingly bright, particularly with the backing of major investors like Macquarie and Nvidia. The substantial investment in its HPC data centers is expected to help the company expand its infrastructure and capture more market share in the rapidly growing AI and HPC sectors.
This partnership with Macquarie underscores the increasing importance of advanced data centers in powering the next generation of AI technologies and high-performance computing applications. Applied Digital’s strengthened position in this space could offer substantial growth opportunities in the coming years.
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