Applied Digital Shares Surge 236% in 2025; Target Price Raised to $56
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Strong Demand Visibility: Applied Digital has fully contracted its 400 megawatts of data center capacity at the Polaris Forge 1 campus with CoreWeave under a long-term lease valued at approximately $11 billion, indicating robust market demand and future growth potential.
- Revenue Transition: The company's first 100-megawatt building at the Polaris Forge 1 campus is now operational, with the CoreWeave lease expected to generate $0.5 billion in annual net operating income, marking a successful transition from construction to recurring revenue generation.
- Expansion Plans: The Polaris Forge 2 campus is set to begin service in late 2026, with a $5 billion long-term lease covering 200 megawatts already signed, significantly reducing the risk of unsold capacity and further solidifying the company's market position.
- Long-term Goals: The company anticipates reaching a $1 billion net operating income run rate within the next five years, positioning Applied Digital favorably in the industry with strong demand for AI data centers and visible cash flow.
APLD
$24.81+Infinity%1D
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: 24.050
Low
35.00
Averages
42.78
High
56.00
Current: 24.050
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.
