Applied Digital Reports 250% Revenue Growth and Negotiates 900MW Data Center Capacity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 11 2026
0mins
Source: Fool
- Significant Revenue Growth: Applied Digital's fiscal Q2 revenue surged 250% to $126.6 million, primarily driven by strong performance in its high-performance computing business, which is expected to fuel future high-margin growth.
- Data Center Expansion Plans: The company is in advanced discussions with multiple large cloud providers to secure 900 megawatts of data center capacity over the next few years, which will significantly enhance its market position and revenue potential.
- Improved Profitability: Although adjusted net income was only $0.1 million, EBITDA soared from $6.1 million a year ago to $20.2 million, indicating progress in cost control and operational efficiency.
- Financial Condition Analysis: With $1.9 billion in cash and $2.6 billion in debt, Applied Digital's negative cash flow raises concerns, yet its financing capabilities provide assurance for future expansions, prompting investors to carefully weigh risks against potential rewards.
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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: 40.220
Low
36.00
Averages
49.18
High
99.00
Current: 40.220
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.
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Applied Digital Shares Surge 68% on AI Factory News
- Significant Stock Surge: Applied Digital's shares have surged over 68% in January, primarily driven by the groundbreaking news of the Delta Forge 1 AI factory, indicating strong market confidence in its future growth prospects.
- Major Investment Backing: Nvidia's $2 billion investment in CoreWeave, purchasing 22.7 million shares at $87.20 each, not only accelerates the construction of AI factories but also provides robust partnership support for Applied Digital.
- Revenue from Lease Agreements: The 15-year lease agreements signed between Applied Digital and CoreWeave are expected to generate approximately $7 billion in revenue, marking a significant advancement in the company's strategic positioning in high-performance computing.
- Shift in Market Sentiment: Retail sentiment on Applied Digital has shifted from neutral to bullish, with message volumes on Stocktwits surging 43% in the last 24 hours, reflecting investor optimism about the company's future performance.
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