Applied Digital Stock Soars Amid Funding News
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11 hours ago
0mins
Source: Fool
- Funding Boosts Stock Price: Applied Digital's stock surged 38% in May following the announcement of a $300 million senior secured bridge facility, reflecting strong investor optimism in the AI sector amid a broader S&P 500 rise of 5.2%.
- Data Center Expansion Plans: The company plans to use the new funding to construct its third AI data center and signed a long-term lease on May 20 for a fourth center, which will deliver 300 megawatts of critical IT load, enhancing its competitive edge.
- Cloud Business Spin-off: On May 5, Applied Digital completed the spin-off of its cloud business, which was acquired by EKSO and rebranded as ChronoScale Corporation, indicating a strategic shift towards focusing on AI data center operations.
- Analysts Raise Price Targets: Following positive business developments, multiple analysts raised their price targets for Applied Digital stock, indicating market recognition of its growth potential, despite a 13.5% decline in June amid broader market pressures.
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Analyst Views on APLD
Wall Street analysts forecast APLD stock price to rise
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 39.620
Low
36.00
Averages
52.22
High
99.00
Current: 39.620
Low
36.00
Averages
52.22
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.
Applied Digital Secures Long-Term Lease, Shares Rise 8%
- Long-Term Lease Agreement: Applied Digital has secured a long-term lease for 210 MW with a U.S.-based high investment-grade hyperscaler, expected to generate $5.2 billion in base-term contracted revenue, potentially rising to $12.7 billion if all renewal options are exercised, significantly enhancing the company's financial stability.
- Data Center Expansion: The Delta Forge 2 data center, scheduled to go online in Q1 2028, will be the fifth campus for Applied Digital, providing 1.4 GW of critical IT load and 2.15 GW of grid-connected utility power, further solidifying its market position in AI training and inference.
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- Portfolio Expansion: This agreement raises Applied Digital's total contracted portfolio to around $36 billion across five AI Factory campuses, with about 70% of contracted revenue backed by investment-grade hyperscalers, further reinforcing long-term demand visibility.
- Innovative Operating Model: CEO Wes Cummins stated that this deal exemplifies Applied Digital's strategy of scaling a standardized operating model across multiple sites, aiming to replicate design, construction, and operations teams rather than building isolated data centers.
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Applied Digital Stock Soars Amid Funding News
- Funding Boosts Stock Price: Applied Digital's stock surged 38% in May following the announcement of a $300 million senior secured bridge facility, reflecting strong investor optimism in the AI sector amid a broader S&P 500 rise of 5.2%.
- Data Center Expansion Plans: The company plans to use the new funding to construct its third AI data center and signed a long-term lease on May 20 for a fourth center, which will deliver 300 megawatts of critical IT load, enhancing its competitive edge.
- Cloud Business Spin-off: On May 5, Applied Digital completed the spin-off of its cloud business, which was acquired by EKSO and rebranded as ChronoScale Corporation, indicating a strategic shift towards focusing on AI data center operations.
- Analysts Raise Price Targets: Following positive business developments, multiple analysts raised their price targets for Applied Digital stock, indicating market recognition of its growth potential, despite a 13.5% decline in June amid broader market pressures.
See More
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- Growing Demand: The company has amassed a substantial backlog of contracts amid rapidly increasing hyperscaler demand, highlighting urgent needs for data center capacity, which also intensifies execution pressures.
- Market Competition: Although Applied Digital is viewed as an 'Indispensable Monopoly' providing critical technology needed by Nvidia and Intel, analysts caution that competition could impact its market position, urging investors to be cautious.
- Investment Recommendations: The Motley Fool's analyst team did not include Applied Digital in their list of the top 10 stocks to buy, reflecting a cautious outlook on its future performance and suggesting investors consider other high-return potential stocks.
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- Surging Demand: The company is currently experiencing a rapid increase in hyperscaler orders, signaling a swift rise in demand for AI computing capabilities, which not only drives revenue growth but also lays a foundation for its long-term strategy.
- Risk Factors: Despite the optimistic market outlook, the company faces challenges such as valuation risk, increasing debt, and execution pressure, which could impact its future financial performance, necessitating cautious evaluation of potential market volatility by investors.
- Changing Market Environment: As demand for AI computing continues to rise, Applied Digital must find a balance amid limited resources and intense competition to ensure its leading position in the industry and achieve sustainable growth.
See More
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- Long-Term Lease Agreement: Applied Digital has secured a long-term lease for 210 MW with a U.S.-based high investment-grade hyperscaler, expected to generate $5.2 billion in base-term contracted revenue, potentially rising to $12.7 billion if all renewal options are exercised, significantly enhancing the company's financial stability.
- Data Center Expansion: The Delta Forge 2 data center, scheduled to go online in Q1 2028, will be the fifth campus for Applied Digital, providing 1.4 GW of critical IT load and 2.15 GW of grid-connected utility power, further solidifying its market position in AI training and inference.
- Business Model Validation: CEO Wes Cummins emphasized that the ongoing demand from leading hyperscalers validates their
See More
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- Middle East Tensions: Iran's chief negotiator stated that the U.S. is
See More
Applied Digital Signs 15-Year Lease with $5.2 Billion Revenue
- Long-Term Lease Agreement: Applied Digital has signed a 15-year lease for 210 megawatts with a U.S.-based investment-grade hyperscaler, projecting base-term revenue of approximately $5.2 billion, which significantly enhances the company's revenue stability and market competitiveness.
- Portfolio Expansion: This agreement raises Applied Digital's total contracted portfolio to around $36 billion across five AI Factory campuses, with about 70% of contracted revenue backed by investment-grade hyperscalers, further reinforcing long-term demand visibility.
- Innovative Operating Model: CEO Wes Cummins stated that this deal exemplifies Applied Digital's strategy of scaling a standardized operating model across multiple sites, aiming to replicate design, construction, and operations teams rather than building isolated data centers.
- Community Economic Impact: The Delta Forge 2 campus is expected to support local employment and construction activities, featuring the company's proprietary waterless cooling and high-density infrastructure, with initial operations anticipated to begin in Q1 2028, driving long-term economic growth.
See More
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- Funding Boosts Stock Price: Applied Digital's stock surged 38% in May following the announcement of a $300 million senior secured bridge facility, reflecting strong investor optimism in the AI sector amid a broader S&P 500 rise of 5.2%.
- Data Center Expansion Plans: The company plans to use the new funding to construct its third AI data center and signed a long-term lease on May 20 for a fourth center, which will deliver 300 megawatts of critical IT load, enhancing its competitive edge.
- Cloud Business Spin-off: On May 5, Applied Digital completed the spin-off of its cloud business, which was acquired by EKSO and rebranded as ChronoScale Corporation, indicating a strategic shift towards focusing on AI data center operations.
- Analysts Raise Price Targets: Following positive business developments, multiple analysts raised their price targets for Applied Digital stock, indicating market recognition of its growth potential, despite a 13.5% decline in June amid broader market pressures.
See More
Applied Digital Faces Challenges in AI Infrastructure Amid Stock Rally
- Stock Volatility: Applied Digital's stock experienced a significant rally on May 28, 2026, indicating strong market demand for its AI infrastructure, yet this has raised concerns about valuation risks.
- Growing Demand: The company has amassed a substantial backlog of contracts amid rapidly increasing hyperscaler demand, highlighting urgent needs for data center capacity, which also intensifies execution pressures.
- Market Competition: Although Applied Digital is viewed as an 'Indispensable Monopoly' providing critical technology needed by Nvidia and Intel, analysts caution that competition could impact its market position, urging investors to be cautious.
- Investment Recommendations: The Motley Fool's analyst team did not include Applied Digital in their list of the top 10 stocks to buy, reflecting a cautious outlook on its future performance and suggesting investors consider other high-return potential stocks.
See More
Applied Digital's High-Stakes AI Infrastructure Narrative
- Stock Surge: Applied Digital (APLD) has seen its stock price rise by 10.24% recently, reflecting strong market confidence in its AI infrastructure, particularly against a backdrop of scarce data center capacity, indicating optimistic investor expectations for future growth.
- Surging Demand: The company is currently experiencing a rapid increase in hyperscaler orders, signaling a swift rise in demand for AI computing capabilities, which not only drives revenue growth but also lays a foundation for its long-term strategy.
- Risk Factors: Despite the optimistic market outlook, the company faces challenges such as valuation risk, increasing debt, and execution pressure, which could impact its future financial performance, necessitating cautious evaluation of potential market volatility by investors.
- Changing Market Environment: As demand for AI computing continues to rise, Applied Digital must find a balance amid limited resources and intense competition to ensure its leading position in the industry and achieve sustainable growth.
See More
