UBS initiated coverage of neocloud Applied Digital with a Buy rating and $38 price target, endorsing the company's inference and training infrastructure business.

Applied Digital Corporation designs, builds, and operates sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. The company operates through two primary business segments.

The Data Center Hosting Business provides energized space to cryptocurrency mining customers, with client-owned hardware installed in company facilities. Applied Digital handles operational and maintenance services for a fixed fee. This segment operates two major facilities: a 106-megawatt facility in Jamestown and a 180-megawatt facility in Ellendale, North Dakota.

The HPC Hosting Business designs, builds, and operates data centers engineered to support high-compute applications using advanced technologies and infrastructure. Applied Digital serves customers requiring sophisticated computational capabilities through this segment, with its HPC data center located at the Polaris Forge 1 campus, which has 100 megawatts of capacity.

Applied Digital employs 256 people.