Applied Digital Leverages Steam Turbines to Deliver AI Computing Capacity 3 Years Early
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 11 2026
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Source: NASDAQ.COM
- Significant Revenue Growth: Applied Digital reported a staggering 250% year-over-year revenue increase to $126.6 million in Q2 of fiscal 2026, reflecting the explosive demand for AI data centers and solidifying its market position.
- AI Computing Capacity Delivery: The company delivered the first 100 MW of AI computing capacity at its Polaris Forge 1 campus, with a total capacity expected to reach 400 MW for CoreWeave, showcasing its competitive advantage in rapid expansion.
- Long-Term Contract Signing: Applied Digital signed a 15-year lease with a U.S. hyperscaler for 200 MW of AI capacity, projected to generate approximately $5 billion in revenue, further enhancing its financial outlook.
- Innovative Solution: By partnering with Babcock & Wilcox to install multiple 300 MW natural gas steam turbine power plants by 2028, Applied Digital aims to solve its power supply bottleneck 3 to 4 years earlier, ensuring its leading position in the AI data center market.
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: 36.180
Low
36.00
Averages
49.18
High
99.00
Current: 36.180
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.
