January 27, 2025
We recently compiled a list of the 8 Unstoppable Artificial Intelligence (AI) Stocks to Invest In . In this article, we are going to take a look at where Applied Digital Corporation (NASDAQ:APLD) stands against the other AI stocks.
AI continues to accelerate rapidly, moving from emerging technologies to influencing how businesses operate. From developing AI agents to communicating with technology, AI technologies appear to be well-placed to transform the working environments. In 2025, AI is expected to revolutionize technology, significantly impacting businesses and data centers. In the current year, AI-powered Agents might transform industries, sectors, and everyday tasks.
The agents are expected to execute tasks autonomously, refine the workflows, and enable individuals to remain focused on higher-value activities.
Kenneth Rogoff, a Harvard economist, explained the significant impact of AI on the global economy, primarily related to interest rates. He spoke to CNBC-TV18 at WEF in Davos and highlighted how artificial intelligence has been fueling shifts in productivity, labor markets, and inflation, which influence the decisions of central banks. As per the economist, AI continues to act as one of the factors responsible for higher interest rates, reiterating its increasing impact on financial markets and economic policy. With the advancement of AI technologies, apart from reshaping productivity, they also alter the dynamics of economic growth.
The integration of AI across sectors is expected to result in significant shifts in labor markets and broader investment strategies, which contribute to inflationary pressures.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In .
As per SAP, advanced AI agents capable of planning, reasoning, using tools, collaborating with humans and other agents, and reflecting on progress till the objective is achieved are on the horizon. Future AI agents, or multi-agent systems (MAS), will be able to collaborate to understand the business user, get all the context, and then structure the problem to interact with domain-specific expert AI agents. Over the five-year horizon, AI agents are expected to simplify significant portions of workflows. This includes aspects that were resistant to automation, like exceptions in customer service and specific programming activities such as coding or debugging software.
While 2024 revolved around introducing AI use cases, SAP believes that 2025 is expected to see the industry’s adoption of AI specifically for businesses. AI is expected to mature to the point where it can handle critical business issues including managing multi-national complexities. Also, AI’s next frontier focuses on seamlessly unifying people, data, and processes with a focus on enhancing business outcomes. The year 2025 might see increased adoption of AI throughout the workforce as people know the benefits of humans plus AI.
Our Methodology
To list the 8 Unstoppable Artificial Intelligence (AI) Stocks to Invest In, we used a screener and sifted through several online rankings. We shortlisted the AI stocks that have gained more than 25% over the past 6 months and in which analysts expect an upside of at least 20%. Finally, the stocks were arranged in ascending order of their average upside potential, as of 24 January. We also mentioned the hedge fund sentiments around each stock, as of Q3 2025.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points ( see more details here ) .
An overhead view of a large-scale data center with rows of servers and blinking lights.
Percentage Return Over 6 Months: ~110.3%
Average Upside Potential: ~31.1%
Number of Hedge Fund Holders: 26
Applied Digital Corporation (NASDAQ:APLD) is engaged in designing, developing, and operating digital infrastructure solutions and cloud services in high-performance computing (HPC) and artificial intelligence industries in North America. The company’s infrastructure aids AI/ML applications, including natural language processing, computer vision, and other high-performance applications. The upward trajectory in Applied Digital Corporation (NASDAQ:APLD)’s stock continued as the company entered into a $5.0 billion perpetual preferred equity financing facility with investment vehicles of funds managed by Macquarie Asset Management.
As per Anton Moldan, Senior Managing Director of Macquarie Asset Management, Applied Digital Corporation (NASDAQ:APLD) possesses a differentiated strategy with access to a unique near-term power portfolio throughout North America in markets attractive for computing needs that address the most demanding AI and other HPC applications at scale. The capital influx from Macquarie is expected to accelerate the development of Applied Digital Corporation (NASDAQ:APLD)’s North Dakota data center campus, which forms a key component of its growth plans. Furthermore, HC Wainwright upped the price target on the company’s shares from $10.00 to $12.00, giving a “Buy” rating.
AI models, mainly LLMs, need vast computational resources. The company’s next-generation HPC data centers are suitable for AI training and inference workloads. As AI adoption grows across industries, the demand for such infrastructure solutions is expected to increase, fueling revenue growth for Applied Digital Corporation (NASDAQ:APLD).
Overall APLD ranks 5th on our list of the unstoppable AI stocks to invest in. While we acknowledge the potential of APLD as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than APLD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock .
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap .
Disclosure: None. This article is originally published at Insider Monkey .
