Applied Digital (APLD) Capitalizes on AI Data Center Boom with Explosive Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: NASDAQ.COM
- Significant Revenue Growth: Applied Digital is experiencing explosive revenue growth driven by the AI data center boom, indicating strong market demand and potential for long-term profitability.
- Contract Value Breakthrough: The company has secured billion-dollar contracts, which not only strengthens its market position but also lays a solid financial foundation for future expansion.
- Execution Risks Present: While the company faces execution risks, the upside could be enormous if demand remains strong, potentially leading to significant shareholder value enhancement.
- Cautious Investment Advice: Despite the optimistic market outlook, the Motley Fool analyst team did not include Applied Digital in their top ten stock recommendations, advising investors to carefully assess investment risks.
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 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
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 34.740
Low
36.00
Averages
49.18
High
99.00
Current: 34.740
Low
36.00
Averages
49.18
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.
