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Analysts there told investors that the company is a provider for the artificial intelligence (AI) arms race.
The company is a “high-risk/high-return play on the AI-driven need for high-performance computing (HPC),” said the analysts.
“Amid the AI revolution, APLD is strategically positioned as a critical infrastructure provider for AI application,” they added. “With AI’s potential parallels to the app explosion brought by the iPhone, APLD stands to meet the growing compute demands emerging from AI. We see APLD capitalizing on AI, as infrastructure providers capture dollars flowing from companies training and maintaining AI models, such as Character.ai (an APLD client).”
While they believe the company’s cash flows at scale look robust, they note there are “significant capital barriers to overcome to obtain operational scale.”
