U.S. Stocks Rise as Dow Jones Gains Over 700 Points
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Should l Buy APLD?
Source: Benzinga
- Dow Jones Performance: The Dow Jones index rose over 700 points on Friday, indicating a strong market rebound that reflects investor optimism about economic recovery, which could further drive consumer spending and investment.
- Strategic Shares Surge: Strategy shares jumped 14.1% to $122.56 on Friday, signaling a positive market outlook for the company and potentially attracting more investor interest in its future growth prospects.
- Overall Market Trend: The overall rise in U.S. stocks suggests a restoration of investor confidence, which may lead to increased capital inflows into the stock market, thereby promoting economic growth and corporate earnings.
- Market Data Source: This market update is provided by Benzinga APIs, highlighting improved market information transparency that aids investors in making more informed decisions.
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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: 28.650
Low
36.00
Averages
52.22
High
99.00
Current: 28.650
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 Faces Counterparty Risks Amid Growth
- Contract Revenue Security: Applied Digital boasts $16 billion in contracted lease revenue, providing investors with a sense of future cash flow security; however, this revenue's guarantee hinges on the tenants' ability to pay, exposing significant counterparty risk.
- Construction Progress Challenges: While Applied Digital has successfully completed the second phase of its Polaris 1 campus, offering 100 megawatts of capacity, it still needs to deliver an additional 600 megawatts without delays, facing multiple challenges such as supply chain disruptions and equipment shortages.
- Debt Surge Risk: The company's debt skyrocketed from $468 million in November 2024 to $2.6 billion, a more than fivefold increase, while it reported a $125 million loss over the past 12 months, raising concerns about the sustainability of its future revenues.
- Dependency Structure Vulnerability: Applied Digital's growth is heavily reliant on CoreWeave, which in turn depends on OpenAI's financial backing; if any layer of this structure falters, it could directly impact Applied Digital's shareholders, increasing overall investment risk.
See More
Applied Digital Faces Significant Risks Amid Debt Surge
- Debt Surge: Applied Digital's debt skyrocketed from $468 million to $2.6 billion within a year, indicating significant financial strain as the company relies on future earnings, which could jeopardize operational stability.
- Lease Contract Risks: The company's lease agreements include termination clauses that allow tenants to exit without penalties if construction targets are missed, placing Applied Digital at a disadvantage in negotiations and potentially leading to reduced rental rates.
- Dependency Issues: Of Applied Digital's $16 billion in contracted revenue, $11 billion hinges on CoreWeave, which is also highly leveraged and unprofitable, creating a precarious financial structure that heightens risk.
- Market Confidence Erosion: While Applied Digital's revenue outlook appears promising, its primary customer OpenAI is projected to lose $211 billion from 2026 to 2030, which could directly impact Applied Digital's shareholders and undermine market confidence.
See More
CoreWeave Stock Soars 123%: Growth Prospects and Market Concerns
- Stock Performance: Since going public in March 2025, CoreWeave's stock has risen 123%, despite peaking over 300% by the end of June 2025, but is currently down 51% from its 52-week high, reflecting market concerns about the sustainability of AI infrastructure spending.
- Data Center Expansion: In Q3 2025, CoreWeave increased its active data center capacity by 120 megawatts to 590 MW, while expanding its potential data center pipeline by over 600 MW, raising its contracted power capacity to 2.9 gigawatts, showcasing strong growth potential in a supply-constrained market.
- Revenue Backlog: As of Q3 2025, CoreWeave's revenue backlog stood at nearly $56 billion, almost double the $31 billion combined revenue analysts expect for 2026 and 2027, indicating the company's ability to sustain growth and exceed market expectations in the coming years.
- Market Outlook: With an estimated $1.7 trillion in AI data center spending expected by 2030, CoreWeave is well-positioned in this rapidly growing market, with projected revenue growth of nearly 4x over the next two years, making it a compelling buy for investors before it’s too late.
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CoreWeave's Stock Volatility Post-IPO Highlights Growth Potential
- Stock Performance: Since its IPO in March 2025, CoreWeave's stock has surged 123%, despite experiencing volatility of up to 300%, indicating strong market performance and investment appeal.
- Revenue Backlog: As of Q3 2025, CoreWeave's revenue backlog stood at nearly $56 billion, almost double the combined $31 billion revenue analysts expect for 2026 and 2027, highlighting significant future growth potential.
- Data Center Expansion: In Q3 2025, CoreWeave increased its active data center capacity by 120 megawatts to a total of 590 megawatts, while expanding its potential data center pipeline by over 600 megawatts, underscoring its critical role in a supply-constrained market.
- Long-Term Growth Outlook: CoreWeave is expected to double its active capacity in the next two years, significantly boosting its revenue from $5.1 billion in 2025, thereby solidifying its leadership position in the AI infrastructure market.
See More
Nvidia's Investment Activity Analysis
- Portfolio Adjustment: In Q4 2025, Nvidia actively adjusted its investment portfolio by selling stakes in Applied Digital and ARM Holdings while initiating a new position in a rising chip player whose stock has surged over 7,000% since its IPO, demonstrating Nvidia's strategic flexibility in AI investments.
- ARM Stake Changes: Nvidia's previous attempt to acquire ARM for $40 billion failed due to regulatory issues, but it maintains a 20-year licensing agreement for ARM technology, indicating a long-term reliance on ARM's architecture for developing various CPUs, which is crucial for its strategic positioning.
- Applied Digital Performance: Applied Digital reported a 177% year-over-year revenue growth in its second fiscal quarter of 2026, while narrowing losses from $143 million to $31.4 million; however, its $8.7 billion market cap is considered overvalued, prompting caution among investors.
- Collaboration with Intel: Nvidia announced a $5 billion investment in Intel, with plans to co-develop chips for data centers and computers, while Intel aims to invest over $100 billion in U.S. manufacturing, highlighting Nvidia's proactive role in fostering industry collaboration and technological advancement.
See More
Investment Opportunities in Data Centers and Digital Advertising
- Applied Digital Growth Potential: Applied Digital signed an $11 billion contract with CoreWeave and a $5 billion deal with another unnamed hyperscaler, projecting over $16 billion in lease revenue from data centers over the next 15 years, highlighting its strong market position amid rising AI demand.
- Significant Revenue Surge: The company reported a 250% year-over-year revenue increase to $126 million last quarter, partly due to the CoreWeave lease initiation, with management targeting $1 billion in annual operating profit over the next five years, which could substantially enhance its market cap.
- Reddit User Growth: Reddit's daily active users rose 19% year-over-year to 121 million, and despite a 54% drop from recent highs, its robust user base and advertising revenue growth present an attractive investment opportunity.
- Advertising Revenue Boost: Reddit's revenue surged 70% year-over-year in Q4 2025, driven by increased ad impressions and higher ad pricing, indicating a high return on investment for advertisers, with analysts projecting a 37% annualized earnings-per-share growth in the coming years.
See More
Applied Digital Faces Counterparty Risks Amid Growth
- Contract Revenue Security: Applied Digital boasts $16 billion in contracted lease revenue, providing investors with a sense of future cash flow security; however, this revenue's guarantee hinges on the tenants' ability to pay, exposing significant counterparty risk.
- Construction Progress Challenges: While Applied Digital has successfully completed the second phase of its Polaris 1 campus, offering 100 megawatts of capacity, it still needs to deliver an additional 600 megawatts without delays, facing multiple challenges such as supply chain disruptions and equipment shortages.
- Debt Surge Risk: The company's debt skyrocketed from $468 million in November 2024 to $2.6 billion, a more than fivefold increase, while it reported a $125 million loss over the past 12 months, raising concerns about the sustainability of its future revenues.
- Dependency Structure Vulnerability: Applied Digital's growth is heavily reliant on CoreWeave, which in turn depends on OpenAI's financial backing; if any layer of this structure falters, it could directly impact Applied Digital's shareholders, increasing overall investment risk.
See More
Applied Digital Faces Significant Risks Amid Debt Surge
- Debt Surge: Applied Digital's debt skyrocketed from $468 million to $2.6 billion within a year, indicating significant financial strain as the company relies on future earnings, which could jeopardize operational stability.
- Lease Contract Risks: The company's lease agreements include termination clauses that allow tenants to exit without penalties if construction targets are missed, placing Applied Digital at a disadvantage in negotiations and potentially leading to reduced rental rates.
- Dependency Issues: Of Applied Digital's $16 billion in contracted revenue, $11 billion hinges on CoreWeave, which is also highly leveraged and unprofitable, creating a precarious financial structure that heightens risk.
- Market Confidence Erosion: While Applied Digital's revenue outlook appears promising, its primary customer OpenAI is projected to lose $211 billion from 2026 to 2030, which could directly impact Applied Digital's shareholders and undermine market confidence.
See More
CoreWeave Stock Soars 123%: Growth Prospects and Market Concerns
- Stock Performance: Since going public in March 2025, CoreWeave's stock has risen 123%, despite peaking over 300% by the end of June 2025, but is currently down 51% from its 52-week high, reflecting market concerns about the sustainability of AI infrastructure spending.
- Data Center Expansion: In Q3 2025, CoreWeave increased its active data center capacity by 120 megawatts to 590 MW, while expanding its potential data center pipeline by over 600 MW, raising its contracted power capacity to 2.9 gigawatts, showcasing strong growth potential in a supply-constrained market.
- Revenue Backlog: As of Q3 2025, CoreWeave's revenue backlog stood at nearly $56 billion, almost double the $31 billion combined revenue analysts expect for 2026 and 2027, indicating the company's ability to sustain growth and exceed market expectations in the coming years.
- Market Outlook: With an estimated $1.7 trillion in AI data center spending expected by 2030, CoreWeave is well-positioned in this rapidly growing market, with projected revenue growth of nearly 4x over the next two years, making it a compelling buy for investors before it’s too late.
See More
CoreWeave's Stock Volatility Post-IPO Highlights Growth Potential
- Stock Performance: Since its IPO in March 2025, CoreWeave's stock has surged 123%, despite experiencing volatility of up to 300%, indicating strong market performance and investment appeal.
- Revenue Backlog: As of Q3 2025, CoreWeave's revenue backlog stood at nearly $56 billion, almost double the combined $31 billion revenue analysts expect for 2026 and 2027, highlighting significant future growth potential.
- Data Center Expansion: In Q3 2025, CoreWeave increased its active data center capacity by 120 megawatts to a total of 590 megawatts, while expanding its potential data center pipeline by over 600 megawatts, underscoring its critical role in a supply-constrained market.
- Long-Term Growth Outlook: CoreWeave is expected to double its active capacity in the next two years, significantly boosting its revenue from $5.1 billion in 2025, thereby solidifying its leadership position in the AI infrastructure market.
See More
Nvidia's Investment Activity Analysis
- Portfolio Adjustment: In Q4 2025, Nvidia actively adjusted its investment portfolio by selling stakes in Applied Digital and ARM Holdings while initiating a new position in a rising chip player whose stock has surged over 7,000% since its IPO, demonstrating Nvidia's strategic flexibility in AI investments.
- ARM Stake Changes: Nvidia's previous attempt to acquire ARM for $40 billion failed due to regulatory issues, but it maintains a 20-year licensing agreement for ARM technology, indicating a long-term reliance on ARM's architecture for developing various CPUs, which is crucial for its strategic positioning.
- Applied Digital Performance: Applied Digital reported a 177% year-over-year revenue growth in its second fiscal quarter of 2026, while narrowing losses from $143 million to $31.4 million; however, its $8.7 billion market cap is considered overvalued, prompting caution among investors.
- Collaboration with Intel: Nvidia announced a $5 billion investment in Intel, with plans to co-develop chips for data centers and computers, while Intel aims to invest over $100 billion in U.S. manufacturing, highlighting Nvidia's proactive role in fostering industry collaboration and technological advancement.
See More
Investment Opportunities in Data Centers and Digital Advertising
- Applied Digital Growth Potential: Applied Digital signed an $11 billion contract with CoreWeave and a $5 billion deal with another unnamed hyperscaler, projecting over $16 billion in lease revenue from data centers over the next 15 years, highlighting its strong market position amid rising AI demand.
- Significant Revenue Surge: The company reported a 250% year-over-year revenue increase to $126 million last quarter, partly due to the CoreWeave lease initiation, with management targeting $1 billion in annual operating profit over the next five years, which could substantially enhance its market cap.
- Reddit User Growth: Reddit's daily active users rose 19% year-over-year to 121 million, and despite a 54% drop from recent highs, its robust user base and advertising revenue growth present an attractive investment opportunity.
- Advertising Revenue Boost: Reddit's revenue surged 70% year-over-year in Q4 2025, driven by increased ad impressions and higher ad pricing, indicating a high return on investment for advertisers, with analysts projecting a 37% annualized earnings-per-share growth in the coming years.
See More
