Applied Digital Rebrands to AI Infrastructure Provider, Stock Up 1,720% Over Three Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Stock Surge: Since rebranding in November 2022, Applied Digital's stock has skyrocketed 1,720% over three years, demonstrating the success of its transition from a blockchain company to an AI infrastructure provider, thereby attracting more investor interest.
- Lease Agreement Revenue: The two lease agreements with CoreWeave are expected to generate a total of $11 billion in revenue, including a recently signed 15-year deal, further solidifying Applied Digital's position in the AI infrastructure market.
- Capital Expenditure Surge: Applied Digital's capital expenditures jumped from $141.8 million in fiscal 2024 to $681.6 million in fiscal 2025, and it has already surpassed $801.5 million in the first two quarters of fiscal 2026, indicating strong investment intentions in building its AI factories.
- Strong Market Demand: Global spending on data centers is projected to reach $1.1 trillion by 2029, and Applied Digital is well-positioned in this rapidly growing market due to its low energy costs and high power density data centers.
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.
