Symbotic and Applied Digital: Investment Opportunities in AI Infrastructure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 28 2025
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Source: Fool
- Market Trends: Bull markets typically feature rising stock prices, with recent gains exceeding 20% from lows, indicating normal market cycles; investors should adhere to long-term plans to mitigate short-term noise.
- Symbotic Growth: Symbotic's contracted backlog stands at approximately $22.5 billion, roughly 10 times its annual sales, showcasing strong revenue visibility, particularly with its partnership with Walmart, which is expected to enhance market share.
- Applied Digital Expansion: Applied Digital's contracted revenue reaches $16 billion, with approximately $11 billion stemming from its partnership with CoreWeave, indicating robust competitiveness amid surging demand for AI compute capacity.
- Financial Performance: Symbotic reported about $788 million in free cash flow in the recent fiscal year, marking a significant turnaround from negative cash flow in the previous year, reflecting improved financial health.
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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.
Long-Term Investment Outlook for Iren and Applied Digital
- Market Performance Comparison: Iren's stock has surged over 400% in the past year, while Applied Digital has seen a remarkable 500% increase, highlighting both companies' strong performance in the AI infrastructure sector that has captivated investors.
- Financial Highlights: Iren recently secured a $9.7 billion AI cloud contract with Microsoft, with net income improving from a loss of $51.7 million in the previous year to a gain of $384.6 million in Q1 of fiscal 2026, indicating the success of its business pivot.
- Business Model Differences: Iren retains the flexibility to switch between cryptocurrency and high-performance computing, while Applied Digital focuses on building high-performance data centers and offering long-term leases, allowing it to capitalize on more predictable cash flows.
- Investor Considerations: For investors seeking cash flow predictability, Applied Digital may be more appealing, whereas Iren is suited for those with a higher risk tolerance due to its flexibility and potential for significant returns.
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Iren Secures $9.7 Billion Deal with Microsoft
- Successful Strategic Shift: Iren has signed a $9.7 billion AI cloud contract with Microsoft, marking a successful transition from Bitcoin mining to AI data center services, which is expected to further drive revenue growth and enhance market competitiveness.
- Significant Financial Improvement: Iren's net income improved from a loss of $51.7 million in the first quarter of the previous fiscal year to a gain of $384.6 million in Q1 of fiscal 2026, demonstrating strong growth potential in the AI infrastructure sector.
- Outstanding Market Performance: Iren's stock has surged over 400% in the past 12 months, while Applied Digital's stock has increased by over 500%, reflecting strong demand for AI infrastructure and positive investor sentiment.
- Future Growth Potential: Applied Digital's backlog has reached $16 billion, with a 250% revenue increase in its latest quarter, indicating that the company's business model in high-performance data centers can generate predictable long-term cash flows, attracting more investor interest.
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