Key Stats for APLD Stock
- Price change for APLD stock over the past three months: about 246% gain
- $APLD Share Price as of Feb. 6: $34.95
- 52-Week High: $35.40
- $APLD Stock Price Target: $23.70
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What Happened?
Applied Digital Corporation (APLD) has rocketed higher in recent weeks as investors focused on its shift from crypto‑mining infrastructure toward high‑performance AI data centers backed by long‑term leases.
A major catalyst came when Nvidia invested $2 billion into CoreWeave in late January, because CoreWeave is Applied Digital’s largest hyperscale tenant and has signed long‑term agreements covering 400 megawatts of capacity at the company’s Polaris Forge 1 campus in Ellendale, North Dakota.
In June 2025, Applied Digital announced two roughly 15‑year lease agreements with CoreWeave covering 250 MW of critical IT load at Ellendale, and the company said it expected to generate approximately $7 billion of revenue over the term, with options for another 150 MW that could add several billion more.
Analysts and commentators have highlighted that these contracts effectively transform Applied Digital into a landlord for AI “factory” capacity, with multi‑year visibility into lease payments as CoreWeave scales its GPU‑rich clusters to meet demand.
In its fiscal second quarter 2026, covering the three months ended November 30, 2025, Applied Digital reported total revenue of $126.6 million, up more than 250% from the $36.2 million recorded in the same quarter a year earlier. However, rapid growth has brought higher costs and continued GAAP losses.
Management disclosed that total cost of revenues rose sharply in Q2 2026, largely because tenant fit‑out work for the HPC Hosting Business required about $69.5 million of additional expenses, while energy and other operating costs increased as more capacity came online.
As a result, Applied Digital still reported a net loss for the quarter and remained free‑cash‑flow negative, even though revenue and segment profit in the hosting businesses improved materially.
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What the Market Is Telling Us About APLD Stock
The strong three‑month rally in APLD shows that investors are increasingly valuing the company on its AI data‑center opportunity rather than on its legacy crypto‑mining exposure, but it also means expectations have risen sharply.
Several recent pieces point out that Applied Digital now derives the majority of its growth from contracts with just a few large customers, especially CoreWeave, so the stock’s fortunes are closely tied to that partner’s expansion plans and financing.
If CoreWeave continues to secure capital and GPU supply from backers such as Nvidia, Applied Digital’s leased capacity should fill quickly; however, any slowdown in AI infrastructure spending or issues at CoreWeave could materially affect the trajectory of APLD’s revenue and utilization.
According to MarketBeat’s latest compilation, the average twelve‑month price target for APLD stands at $23.70, with a high forecast of $40.00 and a low of $7.00, and that average represents a projected downside of roughly 29% from the current $33.43 spot price.
Analysts who remain cautious emphasize that Applied Digital must fund large capital expenditures for data‑center construction, manage project execution risk, and navigate potential changes in AI‑chip demand cycles, so they prefer to see more quarters of stable profitability before assigning higher target prices.
Overall, the market seems to be treating APLD as a high‑growth, higher‑risk AI infrastructure play where contracted revenue and strong demand are balanced against customer concentration, leverage, and the need to convert rapid top‑line expansion into durable free cash flow.
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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!
