I’m breaking down Applied Digital and why this under-the-radar AI infrastructure stock could be setting up for another massive move higher. The company is quietly building hyperscale data centers for AI workloads, signing long-term contracts with some of the biggest names in tech, and positioning itself at the center of the AI power arms race. In this video, I’ll walk through Applied Digital’s explosive revenue growth, why margins are temporarily compressed, and how a potential third hyperscaler deal could completely change the valuation narrative. I’ll also explain why management just raised long-term guidance and what needs to happen for this stock to realistically 3x from here. Most importantly, I’ll cover the key risks that could derail the story, including power grid constraints and a potential slowdown in hyperscaler spending. This is a high-upside, high-stakes AI infrastructure play, and the next 12 to 24 months will be critical. Here's what you'll learn Why Applied Digital is a critical AI infrastructure provider The $5B to $10B catalyst investors are watching closely How $1B+ in future operating income could drive massive upside What risks could cause a 20% to 30% pullback Whether this AI stock is still worth buying after a 300% run Skip ahead: 00:00 - Intro 01:43 - Applied Digital's Profile 02:43 - Recent News 03:43 - Financials 05:34 - Growth Catalysts 07:31 - Risks and Red flags 09:12 - APLD's Price 10:25 - Analysts’ Rating and Verdict #AppliedDigital #APLD #AIStocks #DataCenterStocks #AIInfrastructure #GrowthStocks #StockMarket #TechStocks #Investing #RickOrford Grab Your 10 Stock Picks From Stock Advisor: https://fool.com/ricko Discord: https://rickorford.com/join Website: https://rickorford.com Try Barchart's Free Stock Screener: https://rickorford.com/barchart-stocks Don’t forget to like, subscribe, and turn on notifications for more exclusive content! DISCLAIMER: Stock prices used were the market prices of Jan. 19, 2026. The video was published on Jan. 25, 2026. A portion of this video is sponsored by The Motley Fool. Visit https://fool.com/ricko to get access to my special offer. The Motley Fool Stock Advisor returns are 981% as of 12/10/2025 and measured against the S&P 500 returns of 194% as of 12/10/2025. Dividend Aristocrats® is a registered trademark of Standard & Poor's Financial Services LLC. Past performance is not an indicator of future results. All investing involves a risk of loss. Individual investment results may vary, not all Motley Fool Stock Advisor picks have performed as well. On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this video. This video is for educational purposes only and not financial advice. Always do your own research and consult with a financial advisor before making any investment decisions. All information and data on this YouTube Channel is solely for entertainment purposes. I'm not a financial advisor, nor licensed in any way to provide any financial advice. The information herein is based solely on my personal opinion and experience. All investments hold inherent risk, and the information provided on this YouTube Channel should not be interpreted as any kind of guidance, recommendation, offer, advice, or suggestion. Any ideas and strategies discussed on this channel should not be implemented without first considering your financial and personal circumstances or without consulting a financial professional.