Famous Hedge Fund Tiger Global Opened a New Position in This 1 AI Stock

Tiger Global Management, one of the world's largest hedge funds, remains bullish on artificial intelligence (AI) stocks. In its latest 13F filing with the U.S. Securities and Exchange Commission (SEC), Tiger Global bought 885,000 shares of Applied Digital (APLD). 

Applied Digital builds and operates data centers built for AI workloads, the demand for which has been surging. Tiger's stake in APLD stock is worth $33 million and accounts for 0.14% of the firm’s total portfolio. 

Valued at a market capitalization of $8.3 billion, Applied Digital has returned more than 560% in the last two years. However, the stock is also down almost 45% from its all-time highs. Let's take a closer look.

Where APLD Stock Fits in the Portfolio

Tiger Global's filing lists several other positions in technology names that were bought or expanded during the same period, including Intel (INTC), Advanced Micro Devices (AMD), Seagate Technology (STX), Visa (V), and SpaceX (SPCX). Applied Digital sits alongside two other data-center and crypto-mining companies in the filing, Cipher Digital (CIFR) and Core Scientific (CORZ), both of which are new positions. That pattern points to a broader bet on companies that supply the physical backbone AI companies need, not just the software layer.

Applied Digital designs and builds large campuses that house high-performance computing equipment for AI companies. It leases that space to hyperscalers and other large tech customers on long-term contracts. The company also runs a separate data-center hosting business that supports Bitcoin (BTCUSD) mining.

On the fiscal fourth-quarter 2026 earnings call, CEO Wes Cummins called the period a “defining quarter” for the company. Applied Digital signed leases for five campuses this past year, with three of them in just the last four months. These leases add up to $36 billion in total contracted long-term lease value, built on 1.41 gigawatts of contracted capacity.

The Bull Case for APLD Stock

In Q4 2026, Applied Digital reported revenue of $258.7 million, an increase of 407% year-over-year (YOY). Adjusted EBITDA came in at $42.4 million, up from just $1 million in the prior-year period. 

The company ended Q4 with $4.2 billion in cash. On the earnings call, Cummins said that Applied Digital now expects to hit its goal of $1 billion in annual net operating income about a year from now, which is three years earlier than originally planned. The CEO pointed to $850 billion in data-center lease commitments made by U.S. technology companies over the next several years, which he said is “more than triple prior levels.”

A big part of the recent quarter involved financing. CFO Saidal Mohmand noted that Applied Digital closed $2.15 billion in senior secured notes at 6.75% to fund its Polaris Forge 2 campus, along with a $300 million bridge facility led by Goldman Sachs (GS) and a revolving credit line of up to $550 million. 

The company restructured leases at its Polaris Forge 1 campus, which allowed it to place new notes at 7%, more than two percentage points lower than its first bond sale. Applied Digital also completed the separation of its cloud computing unit, ChronoScale (CHRN), which began trading on the Nasdaq in early May. Applied Digital still owns 96% of that business.

What's Next for Applied Digital Stock?

A new position from a hedge fund like Tiger Global does not guarantee a stock will perform well. Notably, Applied Digital has flagged real constraints ahead, including power availability and supply-chain limits on construction materials. Still, Tiger Global's 13F filing adds Applied Digital to a growing list of AI infrastructure names drawing fresh institutional interest. With contracted lease revenue that has grown from $7 billion to $36 billion, and a construction pipeline stretching toward 1.5 GW, it is easy to see why a growth-focused fund would want in early.

Out of the 13 analysts covering Applied Digital stock, 10 recommend a “Strong Buy” rating, one recommends a “Moderate Buy,” and two have a “Hold” rating. The average price target of $70.35 implies potential upside of 150% from current levels.

Overall, shares have a consensus “Strong Buy” rating on Wall Street. Still, investors weighing their own position should look past the headline filing and dig into the company's execution record, financing costs, and customer concentration before deciding if APLD stock belongs in their portfolio.