Prediction: The Historic Artificial Intelligence (AI) Infrastructure Build-Out Will Make This Stock a Multibagger
Applied Digital's growth is accelerating due to rising demand for its dedicated AI data centers.
Overview
Artificial intelligence (AI) stocks may have fallen out of favor over the past month for various reasons. However, the financial performance of companies involved in the build-out of AI data center infrastructure makes it increasingly clear that now is the time to capitalize on the pullback in AI stocks.
Goldman Sachs estimates that a whopping $7.6 trillion could be spent on AI data centers, computing hardware, and electricity between 2026 and 2031 in a base-case scenario. This historic infrastructure build-out can be attributed to AI's productivity gains. Anthropic, for instance, notes that using its Claude AI model could reduce the time taken to complete a task by 80%.
Details
The pure-play AI company also points out that AI could increase labor productivity in the U.S. by 1.8% annually over the next decade. That's double the growth rate seen since 2019. These potential productivity gains explain why trillions of dollars will be spent on building AI infrastructure. Applied Digital (NASDAQ: APLD) is one of the best ways to capitalize on this lucrative market.
Source
Originally published at www.fool.com.