Applied Digital Stock Soars 260% in 2025; 2026 Outlook Uncertain
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
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Source: Fool
- Stock Performance: Applied Digital's stock has surged approximately 260% in 2025, despite significant volatility, indicating strong investor interest in its artificial intelligence ventures, yet the sustainability of this growth remains uncertain.
- Data Center Expansion: The company completed its first 100-megawatt building at the Polaris Forge 1 campus in North Dakota, with plans to expand to 400 megawatts, which is expected to generate $11 billion in revenue from CoreWeave over a 15-year lease, showcasing robust market demand.
- Lease Agreements: Applied Digital signed a $5 billion lease for 200 megawatts over 15 years with another client and holds the first right of refusal for an additional 800 megawatts at the Polaris Forge 2 campus, indicating strategic positioning in the data center market.
- Financial Status: Despite an 84% year-over-year revenue increase to $64 million in Q1 of fiscal 2026, the company reported a net loss of $28 million, reflecting high costs during its expansion phase, prompting investors to consider its future profitability potential.
APLD
$24.35+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: 25.720
Low
35.00
Averages
42.78
High
56.00
Current: 25.720
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.
