It’s a tough day for all you crypto diehards who swore Bitcoin would hit $100k by New Year’s. And let’s not forget Cathie Wood’s bold, "let's shoot for the stars" prediction of Bitcoin soaring to $3.8 million by 2030. Bless her heart, but we’ve probably got better odds of seeing Musk and Zuckerberg slug it out in a UFC octagon wearing virtual reality headsets.

Applied Digital, the company that made its name by providing data centers for crypto mining in 2021, has officially pivoted to where the real money’s at — AI. And boy, did they hit the motherload. They just bagged a $160 million financing round, and guess who’s at the top of the guest list? Nvidia. And if the 76% peak gain in Applied Digital’s shares is any indication, investors are loving it.

Nvidia, along with some other deep-pocketed players like Related Companies (yes, the real estate moguls who probably own your favorite overpriced apartment), decided to throw serious cash at Applied Digital.

 

This $160 million cash infusion is all about helping the Dallas-based company grow its data center and AI cloud-computing game. And, of course, Nvidia’s all-in because, surprise, surprise, their chips are the magic ingredient powering the whole thing.

So, what’s behind Nvidia’s big interest in Applied Digital? It’s not only about data centers anymore. Applied Digital has expanded into leasing out computing power for AI and machine learning. Basically, if you’re working on AI applications that require huge amounts of computational power, Applied Digital provides the infrastructure to make that happen. 

(Source: Jamestown Sun)

CEO Wes Cummins explained, "We’ve been doing a lot with Nvidia, and I think we’re unique in that we have both the cloud aspect and the data center build-out." In short, they’ve positioned themselves as a critical player in the AI world.

Nvidia has been on an investment spree lately, putting its money behind companies that complement its AI hardware. For example, they helped boost CoreWeave to a $19 billion valuation earlier this year and recently invested $100 million in Sakana AI, a Japanese AI firm. Nvidia’s strategy seems clear: they want to be involved in every part of the AI ecosystem, and Applied Digital is now a key piece of that puzzle.

Applied Digital plans to use this $160 million funding to expand its cloud-computing business and to develop a major data center in North Dakota. Yes, North Dakota. It might not be the first place you think of when it comes to cutting-edge AI, but Applied Digital is aiming to turn it into a high-tech hub.

Now, for the number lovers: as part of this deal, Applied Digital is issuing 49 million shares of common stock at $3.24 per share. Sure, that sounds like your average Tuesday in the stock market world, but this move catapulted the company’s market cap to over $830 million. Talk about leveling up.

Nvidia’s involvement here is anything but random. They’re the go-to when it comes to AI chips, and as generative AI becomes more integrated into everything from creating digital art to automating customer service, Nvidia’s hardware is the key. With a market cap of over $2.5 trillion, they’ve got the resources to shape the future of AI — and Applied Digital is lucky to have Jensen Huang and his superteam in their corner.

But, but, but…

While Nvidia’s out here throwing $160 million at Applied Digital like it’s no big deal, our Stocks.News alert on Wednesday hit a massive +162.08% gain in less than 24 hours after we called it. And get this—our premium members not only cashed in on those sweet gains, but it also marked our fifth triple-digit winner in a row. Talk about a hot streak!

So, why spend your time watching Nvidia’s every move when Stocks.News premium members are busy grabbing explosive gains every week?

Do the math, and if you’re catching the vibe, upgrade to Stocks.News premium before the next alert drops—it’s lined up to be another winner, no doubt.

Until next time, stay sharp and stay frosty!

Stock.News does not have positions in companies mentioned.