NVIDIA's investment leads to a surge in this AI stock after hours

With support from NVIDIA, Applied Digital's stock price surged over 4% in after-hours trading on Thursday.

According to the latest filings disclosed by the U.S. Securities and Exchange Commission (SEC), as of September 30, NVIDIA held approximately 7.7 million shares of Applied Digital, accounting for about 3% of its shares.

Applied Digital focuses on designing and operating data centers, providing digital infrastructure solutions aimed at supporting high-performance computing (HPC) and artificial intelligence (AI) applications. The company has seen significant profit growth this year, with a 67% year-on-year increase in revenue for the first fiscal quarter. The company also successfully secured $160 million in investments from institutional and accredited investors.

As early as September 5 of this year, when news of NVIDIA's investment broke, Applied Digital's stock price soared 66%, reaching its highest point in over a month. At that time, reports indicated that Applied Digital would receive $160 million in financing from multiple investors, including NVIDIA, with the investor lineup also including private real estate company Related Companies.

NVIDIA's investment undoubtedly brings greater market attention and potential opportunities to Applied Digital. With the rapid development of artificial intelligence technology, the demand for high-performance computing infrastructure among enterprises is expected to continue to grow, and Applied Digital is likely to benefit from this trend.

Additionally, NVIDIA plans to announce its third-quarter financial report after the market closes on November 20, and investors will closely monitor the company's latest developments and financial performance in the AI and high-performance computing markets.

As of now, Applied Digital's after-hours gains have narrowed from a 4% increase to less than 3%.