AGP Franklin Builds Position in Red-Hot Artificial Intelligence (AI) Stock Up 354%
Key Points
AGP Franklin bought 136,848 shares of Applied Digital, an estimated $3.14 million trade based on average pricing for the period ended September 30, 2025.
The new position represents 1.5% of the fund’s $205.19 million reportable U.S. equity assets under management as of September 30, 2025.
Applied Digital is not among the fund’s top five holdings by portfolio weight after this trade.
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On November 3, 2025, AGP Franklin disclosed a new position in Applied Digital (NASDAQ:APLD), acquiring 136,848 shares in the third quarter for an estimated $3.14 million.
What Happened
According to a filing with the Securities and Exchange Commission dated November 3, 2025, AGP Franklin initiated a new stake in Applied Digital during the third quarter. The fund purchased 136,848 shares, with an estimated transaction value of $3,139,293 for the period ended September 30, 2025.
What Else to Know
This new position accounts for 1.5% of AGP Franklin’s $205.19 million reportable U.S. equity portfolio as of September 30, 2025.
Top holdings after the filing:
- NVDA: $12.76 million (6.2% of AUM)
- PLTR: $10.85 million (5.3% of AUM)
- AMZN: $9.66 million (4.7% of AUM)
- ORCL: $7.73 million (3.8% of AUM)
- JPM: $7.45 million (3.6% of AUM)
As of October 31, 2025, shares of Applied Digital were priced at $34.66, up 412.7% over the year ending October 31, 2025; shares have outperformed the S&P 500 by 353.3 percentage points over the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close October 31, 2025) | $34.66 |
| Market capitalization | $9.81 billion |
| Revenue (TTM) | $219.02 million |
| Net income (TTM) | ($225.71 million) |
Company Snapshot
Applied Digital is a technology company focused on designing and operating digital infrastructure and cloud solutions for high-performance computing and artificial intelligence workloads. It leverages purpose-built data centers and advanced GPU resources to support demanding enterprise applications and digital asset mining.
The company provides digital infrastructure, data center hosting, GPU-based cloud services, and high-performance computing solutions for artificial intelligence, machine learning, and crypto mining applications. It generates revenue through multi-segment operations, including data center hosting, cloud services, and high-performance computing hosting for enterprise and digital asset clients.
Applied Digital serves North American customers in artificial intelligence, machine learning, and digital asset mining industries requiring scalable, high-performance computing infrastructure.
Foolish Take
AGP Franklin, an investment advisory firm headquartered in Tennessee, recently disclosed a new position in Applied Digital worth over $3.1 million.
For average investors, this is an institutional buy worth noting -- here's why.
For starters, Applied Digital stock has been on fire recently. Shares have advanced 354% year-to-date, vastly outpacing the S&P 500, which has generated a total return of 17.5% so far this year.
The reason behind the impressive performance is obvious: The artificial intelligence (AI) revolution. Applied Digital's business model revolves around data center hosting and high performance computing solutions -- both are critical components of the AI ecosystem.
As a result, Applied Digital's business is booming. In its most recent quarter (the three months ending on August 31, 2025), the company reported year-over-year revenue growth of 84%, with trailing 12-month revenue rising to $219 million.
To sum up, this purchase shows a vote of confidence from a large institution, and while Applied Digital stock isn't right for every portfolio, retail investors may want to give this under-the-radar AI stock a closer look.
Glossary
Portfolio weight: The percentage of a fund’s total assets allocated to a particular investment.
Stake: The ownership interest or investment a person or entity holds in a company.
Top holdings: The largest investments in a fund, ranked by their value or portfolio weight.
Reportable U.S. equity portfolio: The portion of a fund’s investments in U.S. stocks that must be disclosed to regulators.
AUM (Assets under management): The total market value of assets a fund or manager oversees on behalf of clients.
High-performance computing (HPC): The use of powerful computers to process complex calculations at high speed, often for scientific or artificial intelligence tasks.
GPU-based cloud services: Cloud computing services that use graphics processing units (GPUs) to accelerate tasks like artificial intelligence and machine learning.
Digital asset mining: The process of using computing power to validate and add transactions to a blockchain, earning cryptocurrency rewards.
Data center hosting: Providing physical space, power, and connectivity for clients’ servers and computing equipment.
Multi-segment operations: Business activities divided into distinct areas or divisions, each generating revenue separately.
TTM: The 12-month period ending with the most recent quarterly report.
Outperforming: Achieving a higher return or growth rate than a benchmark or comparable investment.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Jake Lerch has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Amazon, JPMorgan Chase, Nvidia, Oracle, and Palantir Technologies. The Motley Fool has a disclosure policy.
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