Applied Digital Corp faces challenges amid coal market revival
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 02 2026
0mins
Source: NASDAQ.COM
Applied Digital Corp's stock fell 5.01% as it crossed below the 20-day SMA, reflecting broader market weakness.
The decline comes amid significant developments in the energy sector, particularly a $2.4 billion partnership with Babcock & Wilcox, which has a substantial backlog driven by rising power demand from data centers. Despite this partnership, the stock's performance is overshadowed by the overall market downturn, with the Nasdaq-100 down 0.89% and the S&P 500 down 0.73%.
This situation highlights the challenges Applied Digital faces in capitalizing on its partnership, as market conditions remain unfavorable, potentially impacting future growth prospects.
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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: 47.280
Low
36.00
Averages
52.22
High
99.00
Current: 47.280
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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See More
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- Expanding Client Base: Applied Digital has a 400 MW lease agreement with CoreWeave, and as CoreWeave secures contracts with major clients like OpenAI, Applied Digital is likely to gain more data center construction business, further increasing its market share.
- Optimistic Growth Outlook: Applied Digital's stock has surged 436% over the past year, and despite a high price-to-sales ratio of 27, its long-term lease revenue pipeline and data center expansion potential suggest strong future growth, with all analysts covering the stock rating it a buy.
See More
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- Long-Term Lease Contracts: The company has secured a 15-year lease agreement with CoreWeave, expected to generate $11 billion in lease revenue for Applied Digital, which not only strengthens its cash flow but also highlights its critical position in the AI infrastructure market.
- Data Center Expansion Plans: Applied Digital is currently building 1 GW of data center capacity, with 90% of this capacity locked in through long-term leases, and it aims to expand its active data center capacity to 3.5 GW to meet the growing market demand.
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See More
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