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We recently published a list of Why These 15 Data Center Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where Applied Digital Corp (NASDAQ:APLD) stands against other data center stocks that are skyrocketing so far in 2025.
There have been murmurs of a data center and cloud computing slowdown for the past two years, but none of that has materialized and the data center industry has instead accelerated as companies double down on AI. Even after DeepSeek, investors are pretty bullish on data center stocks as AI companies are learning from DeepSeek’s efficiency to create even more powerful AI models.
The data center sector is projected to grow at a 9.29% CAGR from 2025 to 2033, potentially reaching $494.5 billion by 2033. As such, there are plenty of opportunities if you dig deeper into the market and many of them have just started to rally this year. It’s a good idea to look into the ones spearheading the gains.
Methodology
For this article, I screened the top-performing data center stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? 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.
Applied Digital Corp (NASDAQ:APLD)
Number of Hedge Fund Holders In Q4 2024: 41
Applied Digital Corp (NASDAQ:APLD) is a crypto company but it is increasingly focusing on cloud services for HPC computing.
The stock is up significantly so far in 2025 as it entered into a $5 billion perpetual preferred equity financing facility with Macquarie Asset Management for HPC business. It got an initial investment of up to $900 million for the Ellendale HPC Campus development.
In Q2 FY2025, revenue grew 51% year-over-year to $63.9 million, and the company reported a better-than-expected adjusted net loss of $0.06 per share versus an expected $0.14 loss. Adjusted EBITDA increased 93% to $21.4 million.
It also surged after Nvidia’s SEC filing revealed continued ownership of 7.7 million APLD shares. This is particularly significant as Nvidia sold out of other AI-related holdings like SoundHound AI and Serve Robotics.