Applied Digital's Price Target Raised Following Major Lease Agreement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 10 2025
0mins
Source: TipRanks
Applied Digital Corp's shares surged by 19.27% after crossing above the 5-day SMA, reflecting strong investor confidence following a significant lease agreement.
The company signed a 15-year take-or-pay lease with a U.S.-based investment-grade hyperscaler, projecting about $7.5 billion in base contracted revenue and up to $18.2 billion including options. This agreement is expected to enhance Applied Digital's market position in the AI infrastructure sector, with analysts noting ongoing discussions with major hyperscalers, including Nvidia. The positive market reaction indicates a shift in investor sentiment towards bullish expectations for the company's growth potential.
This lease agreement not only solidifies Applied Digital's revenue stream but also positions the company favorably in a competitive landscape, as it continues to expand its capabilities in high-performance computing. The long-term nature of the contract suggests a stable outlook for future revenue growth.
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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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- Long-Term Lease Revenue: Applied Digital is building 1 gigawatt of data center capacity, with 90% secured through long-term leases, creating a stable revenue stream, particularly with its partnership with CoreWeave expected to generate $11 billion in lease revenue over 15 years.
- 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.
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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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