Applied Digital Corp (APLD) has seen its stock price decline by 5.25%, hitting a 5-day low, despite the broader market's positive performance with the Nasdaq-100 up 0.63% and the S&P 500 up 0.53%.
The company is experiencing explosive revenue growth driven by the AI data center boom, having secured billion-dollar contracts that reflect its competitive position in the industry. While there are execution risks, the potential for significant business expansion remains strong, indicating a positive outlook for the company's future. Despite this optimistic scenario, the stock has faced downward pressure, suggesting a possible sector rotation as investors reassess their positions.
This decline in stock price, despite the positive revenue growth and market conditions, highlights the complexities of investor sentiment and market dynamics. Applied Digital's strong fundamentals may not be enough to counteract the current selling pressure, but the long-term growth potential remains promising.
Wall Street analysts forecast APLD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for APLD is 49.18 USD with a low forecast of 36.00 USD and a high forecast of 99.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
Wall Street analysts forecast APLD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for APLD is 49.18 USD with a low forecast of 36.00 USD and a high forecast of 99.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 40.220
Low
36.00
Averages
49.18
High
99.00
Current: 40.220
Low
36.00
Averages
49.18
High
99.00
Northland
Mike Grondahl
Outperform
maintain
$40 -> $56
2026-01-28
New
Reason
Northland
Mike Grondahl
Price Target
$40 -> $56
AI Analysis
2026-01-28
New
maintain
Outperform
Reason
Northland analyst Mike Grondahl raised the firm's price target on Applied Digital to $56 from $40 and keeps an Outperform rating on the shares following "some exciting commentary" on the Q2 call that indicates that the company is currently in advanced discussions with a new top-of-the-stack IG hyperscaler for potentially three sites and 900 MW.
Texas Capital
Derrick Whitfield
Buy
initiated
$42
2026-01-20
Reason
Texas Capital
Derrick Whitfield
Price Target
$42
2026-01-20
initiated
Buy
Reason
Texas Capital analyst Derrick Whitfield initiated coverage of Applied Digital with a Buy rating and $42 price target. Applied Digital combines hyperscale development expertise, proprietary waterless cooling, and rapid deployment capabilities, notes the analyst, who views the company as well positioned to attain leases for a meaningful portion of its land and power portfolio of up to 4.3 gigawatts following recent industry and Trump Administration announcements.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for APLD
Unlock Now
B. Riley
NULL -> Buy
upgrade
$47 -> $53
2026-01-09
Reason
B. Riley
Price Target
$47 -> $53
2026-01-09
upgrade
NULL -> Buy
Reason
B. Riley raised the firm's price target on Applied Digital to $53 from $47 and keeps a Buy rating on the shares. The company is poised to sign incremental hyperscaler agreements at new sites, while simultaneously executing on the initial energization at PF1 and development at PF2, the analyst tells investors in a research note.
Roth Capital
Darren Aftahi
Buy
maintain
$56 -> $58
2026-01-08
Reason
Roth Capital
Darren Aftahi
Price Target
$56 -> $58
2026-01-08
maintain
Buy
Reason
Roth Capital analyst Darren Aftahi raised the firm's price target on Applied Digital to $58 from $56 and keeps a Buy rating on the shares. The firm, which reiterates Applied Digital as a top pick, tells investors in a research note that Q2 results exceeded expectations, but the key takeaway is strong demand, with Applied Digital in advanced talks for 900MW across multiple hyperscale sites. With 600MW already signed, ongoing development, and Macquarie-backed funding, Applied Digital is emerging as a scalable, pure-play AI infrastructure landlord, Roth adds.
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.
