Key Stats for $APLD Stock
- Price Change for $APLD stock: 16%
- Current Share Price: $34
- 52-Week High: $39
- $APLD Stock Price Target: $28
What Happened?
Applied Digital (APLD) stock exploded as much as 30% on Friday before settling up 16% after the AI data center company reported first-quarter results that crushed Wall Street expectations. Revenue came in at $64.2 million, significantly ahead of the $45.5 million analysts expected.
The loss per share of $0.03 also beat estimates of a $0.16 loss. Revenue jumped 84% from $34.85 million a year ago, driven by surging demand for AI infrastructure.
The massive move extended an already incredible run for APLD stock, which is now up 344% year-to-date. The company is capitalizing on the surge in AI data center investments as hyperscalers rush to expand their capacity.
During the quarter, Applied Digital expanded its lease agreement with CoreWeave, a publicly traded AI hyperscaler.
The companies previously had a $7 billion contract for 250 megawatts at Applied Digital’s Polaris Forge 1 campus in North Dakota. CoreWeave exercised its option to expand, bringing total capacity to 400 megawatts and the contract value to approximately $11 billion.
CEO Wes Cummins put the opportunity in perspective: “With hyperscalers expected to invest approximately $350 billion into AI deployment this year, we believe we are in a prime position to serve as the modern-day picks and shovels of the intelligence era.”
That $350 billion figure is staggering. Cummins compared it to the inflation-adjusted $500 billion cost of building the entire U.S. Interstate Highway System, which took 30 years. The Apollo Program to send humans to the moon cost roughly $150 billion over more than a decade. Hyperscalers are investing $350 billion in AI infrastructure in a single year.
Applied Digital also broke ground on Polaris Forge 2, another North Dakota campus initially featuring two buildings totaling 300 megawatts of capacity.
The estimated $3 billion project secured funding from Macquarie Equipment Capital. The first building is expected to come online in late 2026, with full capacity reached by 2027.
Both campuses can scale to 1 gigawatt each over time as additional power becomes available. Applied Digital is in advanced discussions with an investment-grade hyperscaler for Polaris Forge 2 and has entered negotiations with two additional hyperscalers for two new locations.
The company now has 700 megawatts under construction across multiple sites. Applied Digital has a 4-gigawatt active development pipeline, with additional projects under review.
See analysts’ growth forecasts and price targets for APLD stock (It’s free!) >>>
What the Market Is Telling Us About APLD Stock
The explosive move in APLD stock shows investors believe the company is perfectly positioned to capitalize on the AI infrastructure boom. The limiting factor for AI deployment is no longer GPU availability, it’s data centers capable of supporting those GPUs.
Applied Digital was among the first to break ground in 2023 on next-generation designs capable of handling the power and cooling requirements of modern GPUs.
That early start gave them advantages in securing construction crews, building supply chain relationships, and recruiting top data center talent.
The company’s North Dakota locations offer strategic advantages, including abundant low-cost energy, supportive regulations, and over 200 days of free natural cooling annually. Applied Digital’s proprietary design targets a 1.18 power usage effectiveness ratio with near-zero water consumption.
The $11 billion CoreWeave contract provides exceptional visibility. Applied Digital expects roughly $500 million in annual net operating income from that deal alone.
Polaris Forge 2 would significantly increase that figure, putting the company on track toward its goal of $1 billion NOI run rate within 5 years.
Financially, Applied Digital secured a $5 billion preferred equity facility with Macquarie Asset Management.
That structure should minimize future equity dilution and provide a framework to scale additional campuses. The $5 billion unlocks $20 billion to $25 billion in total capital when including project financing.
Applied Digital also secured initial project financing for Polaris Forge 1 that should eliminate the need for additional equity capital at that site.
The company expects to finalize project financing for both the first 100-megawatt and 150-megawatt buildings at rates comparable to or better than competitors.
For investors betting on the AI infrastructure buildout, APLD stock represents a leveraged play on hyperscaler spending.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
