Applied Digital's Stock Surges Amid Data Center Expansion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 14 2025
0mins
Should l Buy APLD?
Source: SeekingAlpha
Applied Digital Corp's stock has surged by 5.04% as it crosses above the 20-day SMA, reflecting strong investor confidence in its growth potential.
The company is expanding its data centers in North and South Dakota, with 700 megawatts already under construction and an additional 4.3 gigawatts in development. This strategic move is expected to significantly enhance its market share and revenue potential, despite the company's current lack of profitability. Analysts forecast a 61% revenue growth for fiscal year 2026, indicating robust demand for AI computing power.
As Applied Digital continues to develop its infrastructure, the market is optimistic about its long-term growth prospects, although investors remain cautious due to the company's high debt levels and reliance on key customers.
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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: 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.
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- 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.
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- 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.
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