Applied Digital and SoundHound AI Projected for Significant Growth in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Applied Digital Performance Surge: Applied Digital's revenue soared by 250% year-over-year to nearly $127 million in Q2 FY2026, significantly exceeding the analysts' estimate of $88 million, reflecting strong demand in the AI data center services sector.
- Optimistic Lease Revenue Outlook: The company has signed lease contracts for 600 megawatts of data center capacity with CoreWeave, projecting a potential lease revenue pipeline of $11 billion over the next 15 years, further solidifying its market position.
- SoundHound AI Market Recovery: SoundHound AI's stock has jumped nearly 11% in 2026, expected to benefit from the widespread adoption of voice AI solutions, particularly in the automotive and restaurant sectors.
- Strong Backlog of Orders: SoundHound AI reported a backlog of $1.2 billion at the end of 2024, which is anticipated to drive its performance beyond Wall Street expectations in 2026 and 2027, with analysts setting a price target of $15.50, indicating a potential 32% upside.
Analyst Views on APLD
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 42.78 USD with a low forecast of 35.00 USD and a high forecast of 56.00 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.
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 36.100
Low
35.00
Averages
42.78
High
56.00
Current: 36.100
Low
35.00
Averages
42.78
High
56.00
About APLD
Applied Digital Corporation is a designer, builder, and operator engineered data centers and colocation services for Artificial Intelligence (AI), cloud, networking, and blockchain workloads. The Company operates through two operating segments: the Data Center Hosting Business and the HPC Hosting Business. The Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. Its custom-designed data centers allow customers to rent space based on their power requirements also it serves one crypto mining customer. 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. The Company builds over two HPC focused data center facilities to provide 100 megawatts (MW) and 150 MW. Its subsidiaries include APLD Rattlesnake Den I LLC, Applied Talent Resources LLC, Sai Computing LLC, and others.
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.
