Applied Digital Reports Significant Q3 Growth with HPC Revenue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 09 2026
0mins
Should l Buy APLD?
Source: stocktwits
- Significant Revenue Growth: Applied Digital reported approximately $127 million in revenue for Q3, a year-on-year increase of $73.7 million, with $71 million attributed to its High-Performance Computing (HPC) business, indicating strong growth potential in the data center sector.
- First Steady HPC Lease Revenue: The company achieved its first steady-state HPC lease revenue from its 100-megawatt Polar Forge 1 facility, marking a successful transformation of its business model and further solidifying its position in the data center market.
- Future Development Outlook: Applied Digital is constructing the Delta Forge 1 facility, expected to begin operations in mid-2027, while also building a new 150MW HPC data center at the Polaris Forge 1 facility, anticipated to come online in 2026, demonstrating strong confidence in future growth.
- Positive Market Reaction: Despite a more than 5% drop in stock price following the Q3 earnings release, market sentiment remains optimistic, with Roth Capital maintaining a 'Buy' rating and a price target of $58, implying a potential upside of about 121%, reflecting investor confidence in the company's future performance.
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Analyst Views on APLD
Wall Street analysts forecast APLD stock price to rise
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 30.090
Low
36.00
Averages
52.22
High
99.00
Current: 30.090
Low
36.00
Averages
52.22
High
99.00
About APLD
Applied Digital Corporation is a designer, builder, and operator of sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. The Company’s segments include data center hosting (Data Center Hosting Business) and high-performance compute hosting (HPC Hosting Business). The Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. Customer-owned hardware is installed in its facilities, and the Company provides operational and maintenance services for a fixed fee. Its facilities include a 106 megawatt (MW) facility in Jamestown and a 180 MW facility in Ellendale, North Dakota. The HPC Hosting Business designs, builds, and operates data centers which are designed to support high-compute applications using advanced technologies and infrastructures to provide services to customers. Its HPC data center is located at its Polaris Forge 1 campus with 100 MW capacity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capital Raising Risks: The company completed a $2.15 billion capital raise at a 6.75% interest rate, which, despite its high cost, provides necessary funding for future data center construction, potentially leading to stable cash flows in the future.
- Data Center Expansion Plans: Applied Digital is constructing the Delta Forge 1 data center with a planned capacity of 430 megawatts, while currently operating only a 100-megawatt facility, which will significantly enhance its market share and service capabilities in the future.
- Market Rebound Potential: Despite a previous decline of over 30% in stock price, Applied Digital's shares have rapidly rebounded following the strong earnings report, reflecting market confidence in its long-term growth potential.
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- Capital Raising Details: The company recently completed a $2.15 billion capital raise at a 6.75% interest rate, indicating market caution regarding its future growth while highlighting the substantial funding required for its expansion plans.
- Data Center Development: Applied Digital is actively constructing several AI-focused data centers, with the Delta Forge 1 project underway at 430 megawatts, and although only a 100-megawatt facility is currently operational, the future growth potential is significant.
- Market Positioning and Risks: While Applied Digital's business model resembles that of a real estate investment trust by leasing data center capacity for profit, its high debt levels could impact long-term financial stability, necessitating careful evaluation of its investment value.
See More
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- Nebius Financial Performance: Nebius reported fourth-quarter revenue of $228 million and expects its annual revenue to soar from $1.25 billion to between $7 billion and $9 billion by the end of 2026, showcasing the increasing popularity and market appeal of its services.
- CoreWeave's Robust Business: Although growing at a slower pace than Nebius, CoreWeave still achieved a 110% year-over-year revenue increase to $1.6 billion in Q4, with expectations of recognizing at least $28 billion in revenue over the next 24 months, reflecting strong market demand and business momentum.
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See More
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