Welcome, Applied Digital Corporation (APLD)!

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Everlution is entering a swing-trade position in Applied Digital Corporation ($APLD) at $4.36, as the stock channels upward — a classic bullish technical pattern that often precedes breakout momentum.

APLD operates at the intersection of infrastructure and AI demand, developing and managing data centers that support:

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• Cloud Services
• High-Performance Computing (HPC) Hosting
• General Data Center Hosting

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As the AI infrastructure ecosystem continues to scale, we believe data center operators like APLD are well-positioned to capture the next wave of investor attention in the "AI Race."

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🔍 The Bull Thesis:

• Technical tailwinds: Channeling upward on the 3-month chart and successfully testing support levels, signaling potential continuation of positive investor sentiment.
• Industry relevance: Strong positioning across the growing data center and AI computing ecosystem.
• Major catalyst on deck: APLD has signed a lease agreement with an "AI Hyperscaler", set to be finalized in early-to-mid 2025. This could spark a significant interest and institutional rerating.

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While APLD’s financials are unstable and management has shown signs of strategic indecision, we see this setup as a compelling "buy the rumor, sell the news" opportunity — with the lease finalization acting as a likely inflection point.

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We’ll look to exit the position as the identity of the Hyperscaler is revealed, capturing upside from speculation and sentiment buildup along the way.

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Current Portfolio

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Under Review

Example 6 is currently under review as one of our portfolio holdings due to its ongoing failure to meet key financial benchmarks including deteriorating operating margins and inconsistent free cash flow generation. In addition, recent legislative developments have introduced significant headwinds to the broader industry, including tighter regulatory scrutiny, reduced subsidies, and shifting compliance standards. Given these challenges, we believe Example 6 may struggle to adapt its business model effectively in the near term, and we are evaluating whether continued exposure aligns with our investment criteria.

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Watchlist

Company1 (MISC) has recently caught our attention due to its aggressive push into the AI infrastructure and edge computing space, two sectors we believe are poised for exponential growth. With roots in cloud-native technologies and distributed systems, Company1 is positioning itself as a next-gen enabler of scalable and high-performance computing power.

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While the company is still early in its public journey, we are monitoring key catalysts such as:
• Strategic partnerships with hyperscalers or enterprise clients
• Expansion of its AI-as-a-Service (AIaaS) offerings
• Margins and revenue growth tied to data center deployment

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We believe Company1 has the potential to evolve into a high-growth infrastructure play—pending execution, adoption metrics, and market positioning over the next few quarters.