The "AI Bubble" Debate Isn't Scaring Serious AI Investors. Here's the Stock They're Backing.

• Concerns astir a bubble successful AI stocks person immoderate investors worried.

• Data centers supply the captious infrastructure needed for AI computing to occur.

• Investors should admit that unprofitable companies transportation a higher grade of risk.

• 10 stocks we similar amended than Applied Digital ›

Stand astir the h2o cooler with immoderate well-informed investors discussing artificial quality (AI) stocks, and you'll apt perceive a assortment of opinions regarding the anticipation that an AI banal bubble has formed.

However, the savviest of investors stay dauntless successful their pursuit of AI exposure, recognizing that the aboriginal is agleam for the industry. In fact, a caller survey conducted by The Motley Fool recovered that 59% of respondents judge a downturn successful AI stocks is improbable to importantly adversely impact their finances.

And portion determination are a assortment of stocks that they're keen connected buying, shares of Applied Digital (NASDAQ: APLD), a developer of information centers that cater to AI computing workloads, person been successful changeless demand.

With investors' enthusiasm for AI surging recently, Applied Digital banal has benefited considerably. Shares person soared by much than 208% implicit the past twelvemonth arsenic of this writing. During the aforesaid time, the S&P 500 has logged a overmuch much humble -- yet inactive awesome -- 16.9% gain.

Expand the clip framework a small more, and the show of Applied Digital banal is adjacent much impressive. Over the past 3 years, it has skyrocketed by 1,430%.

While AI chatbots and different AI applications person go progressively embedded successful assorted aspects of our integer experiences, galore users whitethorn not admit conscionable however overmuch processing powerfulness these tools require. Their demands are substantial. That's wherever Applied Digital comes in. The institution develops high-performance computing (HPC) information centers ideally suited for hyperscalers -- companies that connection unreality computing solutions optimized for AI software.

In August, for example, Applied Digital finalized a 2nd lease statement with hyperscaler CoreWeave relating to Applied Digital's Polaris Forge 1 field successful North Dakota. Following the signing of that agreement, Applied Digital is providing a full of 400 megawatts of information halfway infrastructure to enactment CoreWeave's AI and HPC endeavors. In total, the expected contracted lease gross amounts to astir $11 billion.

Announcing a indebtedness installation with Macquarie Group past month, Applied Digital stated that it is "currently successful advanced-stage negotiations with different investment-grade hyperscaler for aggregate campuses."