Applied Digital Secures $5 Billion AI Infrastructure Contract
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 26 2025
0mins
Should l Buy APLD?
Source: Yahoo Finance
Applied Digital Corp's stock fell 5.05% as it hit a 5-day low amid broader market declines, with the Nasdaq-100 down 0.42% and the S&P 500 down 0.15%.
The company has successfully pivoted from crypto-mining to AI infrastructure, securing a $5 billion long-term contract over 15 years, which is expected to significantly enhance its revenue stability and growth potential. This shift aligns with the increasing demand for AI data centers, as highlighted by the projected growth of the global AI data center market.
Despite the recent stock decline, the long-term outlook for Applied Digital remains positive due to its strategic investments in AI infrastructure and the anticipated growth in the AI sector.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy APLD?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 31.910
Low
36.00
Averages
52.22
High
99.00
Current: 31.910
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.
US Stocks Close Higher on Strong Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, exceeding expectations of 0.3%, indicating a rebound in capital spending that boosts market confidence and drives stock prices higher.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly surpassing the expected 1.304 million, suggesting a recovery in the housing market that could stimulate investment and consumption in related sectors.
- Manufacturing Production Growth: January manufacturing production rose by 0.6% month-over-month, stronger than the expected 0.4%, marking the largest increase in 11 months, indicating a recovery in manufacturing that supports overall economic growth expectations.
- Optimistic Stock Market Performance: Over 75% of S&P 500 companies reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, providing strong support for the stock market despite lingering doubts about future interest rate policies.
See More
Recursion Pharmaceuticals Shares Under Pressure as Nvidia Exits Investment
- Investment Exit Impact: Nvidia's complete exit from its investment in Recursion Pharmaceuticals has pressured RXRX shares, reflecting a decline in market confidence that could hinder future fundraising efforts.
- Technical Indicators Show Weakness: Recursion's stock is currently positioned below all key moving averages, trading 18.2% below its 20-day SMA and 22.5% below its 50-day SMA, indicating sustained bearish momentum, necessitating caution from investors.
- Significant Price Decline: Over the past 12 months, Recursion Pharmaceuticals has experienced a steep decline of 68.19%, highlighting ongoing challenges the company faces, prompting investors to remain vigilant against potential risks.
- Poor Market Performance: As of Wednesday, Recursion shares were down 1.73% at $3.39, hitting a new 52-week low before recovering some losses, yet the overall trend remains weak, indicating market concerns about its future prospects.
See More
US Stock Markets Rise on Strong Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, surpassing expectations of 0.3%, indicating a rebound in capital spending and boosting market confidence in economic recovery.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly exceeding expectations of 1.304 million, suggesting a revival in the real estate market that could drive growth in related sectors.
- Manufacturing Production Growth: January manufacturing production rose 0.6% month-over-month, beating expectations of 0.4%, marking the largest increase in 11 months, which indicates a recovery momentum in manufacturing that may further propel economic growth.
- Optimistic Corporate Earnings: Over 75% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, which will further boost market sentiment and attract investor interest.
See More
US Stock Markets Rise on Positive Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, exceeding expectations of 0.3%, indicating a rebound in capital spending that could further boost stock markets.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly surpassing the expected 1.304 million, suggesting a recovery in the real estate market that may enhance investment confidence in related sectors.
- Manufacturing Production Growth: January manufacturing production rose 0.6% month-over-month, beating expectations of 0.4%, marking the largest increase in 11 months, which could strengthen market confidence in economic recovery.
- Optimistic Corporate Earnings: Over 75% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, reflecting ongoing improvements in corporate profitability that may further drive stock market gains.
See More
Nvidia Divests Entire Stake in Applied Digital Corporation
- Shareholder Impact: Nvidia's divestment of its $177 million stake in Applied Digital led to a 2.18% drop in stock price, highlighting market sensitivity to major shareholder confidence, which could affect investor sentiment and future stock performance.
- Price Performance Review: Over the past 12 months, Applied Digital's stock surged by 240%, yet it currently trades 7.2% below its 20-day SMA and 3.7% above its 50-day SMA, indicating recent underperformance and cautious investor sentiment regarding future trends.
- Technical Indicator Analysis: The current RSI stands at 48.21, suggesting neutral market momentum, while the MACD is below its signal line, indicating bearish pressure, reflecting investor uncertainty about the stock's short-term direction.
- Analyst Ratings & Targets: Despite facing pressure, Applied Digital maintains a Buy rating with an average price target of $30.80, with B. Riley and Roth Capital raising their targets to $53.00 and $58.00 respectively, indicating analysts' confidence in the company's long-term prospects.
See More
Palo Alto's Q2 Earnings Beat Estimates but Guidance Lowered
- Strong Earnings Report: Palo Alto Networks reported fiscal Q2 revenue of $2.59 billion, surpassing analyst expectations of $2.58 billion, indicating robust performance in the cybersecurity sector despite a challenging market environment.
- Earnings Beat: The company posted adjusted earnings of $1.03 per share, exceeding analyst estimates of 94 cents, demonstrating its continued profitability amidst fierce market competition.
- Guidance Downgrade: Palo Alto lowered its full-year adjusted earnings guidance from a range of $3.80 to $3.90 per share to a new range of $3.65 to $3.70, below the market estimate of $3.86, which may impact investor confidence.
- Stock Price Volatility: In pre-market trading, Palo Alto's shares fell 7.5% to $151.20, reflecting the market's negative reaction to the lowered guidance, potentially leading to subdued investor sentiment in the short term.
See More
US Stocks Close Higher on Strong Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, exceeding expectations of 0.3%, indicating a rebound in capital spending that boosts market confidence and drives stock prices higher.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly surpassing the expected 1.304 million, suggesting a recovery in the housing market that could stimulate investment and consumption in related sectors.
- Manufacturing Production Growth: January manufacturing production rose by 0.6% month-over-month, stronger than the expected 0.4%, marking the largest increase in 11 months, indicating a recovery in manufacturing that supports overall economic growth expectations.
- Optimistic Stock Market Performance: Over 75% of S&P 500 companies reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, providing strong support for the stock market despite lingering doubts about future interest rate policies.
See More
Recursion Pharmaceuticals Shares Under Pressure as Nvidia Exits Investment
- Investment Exit Impact: Nvidia's complete exit from its investment in Recursion Pharmaceuticals has pressured RXRX shares, reflecting a decline in market confidence that could hinder future fundraising efforts.
- Technical Indicators Show Weakness: Recursion's stock is currently positioned below all key moving averages, trading 18.2% below its 20-day SMA and 22.5% below its 50-day SMA, indicating sustained bearish momentum, necessitating caution from investors.
- Significant Price Decline: Over the past 12 months, Recursion Pharmaceuticals has experienced a steep decline of 68.19%, highlighting ongoing challenges the company faces, prompting investors to remain vigilant against potential risks.
- Poor Market Performance: As of Wednesday, Recursion shares were down 1.73% at $3.39, hitting a new 52-week low before recovering some losses, yet the overall trend remains weak, indicating market concerns about its future prospects.
See More
US Stock Markets Rise on Strong Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, surpassing expectations of 0.3%, indicating a rebound in capital spending and boosting market confidence in economic recovery.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly exceeding expectations of 1.304 million, suggesting a revival in the real estate market that could drive growth in related sectors.
- Manufacturing Production Growth: January manufacturing production rose 0.6% month-over-month, beating expectations of 0.4%, marking the largest increase in 11 months, which indicates a recovery momentum in manufacturing that may further propel economic growth.
- Optimistic Corporate Earnings: Over 75% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, which will further boost market sentiment and attract investor interest.
See More
US Stock Markets Rise on Positive Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, exceeding expectations of 0.3%, indicating a rebound in capital spending that could further boost stock markets.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly surpassing the expected 1.304 million, suggesting a recovery in the real estate market that may enhance investment confidence in related sectors.
- Manufacturing Production Growth: January manufacturing production rose 0.6% month-over-month, beating expectations of 0.4%, marking the largest increase in 11 months, which could strengthen market confidence in economic recovery.
- Optimistic Corporate Earnings: Over 75% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, reflecting ongoing improvements in corporate profitability that may further drive stock market gains.
See More
Nvidia Divests Entire Stake in Applied Digital Corporation
- Shareholder Impact: Nvidia's divestment of its $177 million stake in Applied Digital led to a 2.18% drop in stock price, highlighting market sensitivity to major shareholder confidence, which could affect investor sentiment and future stock performance.
- Price Performance Review: Over the past 12 months, Applied Digital's stock surged by 240%, yet it currently trades 7.2% below its 20-day SMA and 3.7% above its 50-day SMA, indicating recent underperformance and cautious investor sentiment regarding future trends.
- Technical Indicator Analysis: The current RSI stands at 48.21, suggesting neutral market momentum, while the MACD is below its signal line, indicating bearish pressure, reflecting investor uncertainty about the stock's short-term direction.
- Analyst Ratings & Targets: Despite facing pressure, Applied Digital maintains a Buy rating with an average price target of $30.80, with B. Riley and Roth Capital raising their targets to $53.00 and $58.00 respectively, indicating analysts' confidence in the company's long-term prospects.
See More
Palo Alto's Q2 Earnings Beat Estimates but Guidance Lowered
- Strong Earnings Report: Palo Alto Networks reported fiscal Q2 revenue of $2.59 billion, surpassing analyst expectations of $2.58 billion, indicating robust performance in the cybersecurity sector despite a challenging market environment.
- Earnings Beat: The company posted adjusted earnings of $1.03 per share, exceeding analyst estimates of 94 cents, demonstrating its continued profitability amidst fierce market competition.
- Guidance Downgrade: Palo Alto lowered its full-year adjusted earnings guidance from a range of $3.80 to $3.90 per share to a new range of $3.65 to $3.70, below the market estimate of $3.86, which may impact investor confidence.
- Stock Price Volatility: In pre-market trading, Palo Alto's shares fell 7.5% to $151.20, reflecting the market's negative reaction to the lowered guidance, potentially leading to subdued investor sentiment in the short term.
See More
