Applied Digital has a median price target of $11 per share, which is 26% higher than the current price. While not yet profitable, the company is heading in that direction and this Macquarie funding will allow it to improve its balance sheet, as well as invest.

(Corrects paragraph 1 to say Macquarie will take a stake in Applied Digital's high-performance computing unit, not the whole company. The error was there in previous versions of the story; Removes reference to valuation of 15% stake in Applied Digital and Macquarie's shareholding in the company)(Reuters) -Australia's Macquarie on Tuesday agreed to take a 15% stake in Applied Digital's high-performance computing business and invest up to $5 billion in the company's artificial intelligence data centers amid booming AI demand.

Macquarie Asset Management (MAM) has agreed to provide up to $5 billion in preferred equity financing to Applied Digital, a developer of high-performance computing (HPC) data centers.