Key Takeaways APLD is treating energy as a strategic asset, investing in on-site gas power and advanced cooling.Applied Digital teams with Babcock and Wilcox to speed gas power and backs Corintis for denser AI loads.Zacks Consensus Estimate pegs fiscal Q3 revenues at $75.06M, up 41.83% year over year.Applied Digital (APLD) is enhancing its competitive edge by treating energy availability as a strategic asset rather than a passive input. Through its collaboration with Babcock and Wilcox Enterprises and a $15 ...

Core Viewpoint - Major tech companies like Amazon, Microsoft, and Alphabet (Google's parent) are trying to reassure investors about the profitability of their AI investments, but investor patience is waning as capital spending plans for 2026 increase [1] Group 1: Company Insights - Amazon, Microsoft, and Alphabet have been actively communicating their strategies and expectations regarding AI development to investors [1] - The companies are facing challenges as the market's tolerance for high capital expenditures diminishes [1] Group 2: Industry Trends - The overall trend in the tech industry indicates a growing concern among investors regarding the return on investment from AI initiatives [1] - Capital spending plans for 2026 are projected to rise, which may further strain investor confidence [1]

Key Takeaways APLD trades near a 52-week high after a 172.7% six-month rally driven by hyperscale leases.The Zacks Consensus Estimate pegs APLD's fiscal 2026 loss at 36 cents per share, improving 55% from 2025.APLD trades at a valuation premium while significant capacity remains uncontracted.Applied Digital (APLD) shares closed at $38.26 on Monday (Feb. 09), 9.5% below the 52-week high of $42.27 it hit on Jan. 28, 2026. APLD shares have jumped 172.7% in the past six months, outperforming the Zacks Finance s ...

Applied Digital's stock has been on a tear so far in 2026.The AI space is full of booming companies that have the potential to turn meager investments into massive dollar figures. Some are even viewing it as a space that could mint new millionaires. One stock that has excited investors in particular is Applied Digital (APLD +25.50%). Applied Digital has been on an absolute tear during 2026, rising 50% through Feb. 3. Since the start of 2025, it's up nearly 400% as I write this. Clearly, something is going o ...

Core Insights - The artificial intelligence infrastructure boom is projected to lead to $7 trillion in data center investments by 2030, positioning Applied Digital to capitalize on this growth [1] - Despite the potential, the company's financials reveal significant concerns, particularly regarding its rising debt levels [1] Financial Overview - Applied Digital's debt has surged from $44 million in Q1 2024 to $2.6 billion, resulting in a debt-to-equity ratio exceeding 125% [2] - The company is heavily reliant on future lease revenue of $16 billion, primarily from two clients, with $11 billion coming from CoreWeave, which is also accumulating substantial debt [3][4] Customer Concentration Risk - The concentration of future revenue from a limited number of clients poses a significant risk, especially if CoreWeave fails to meet its obligations [3][4] Operational Risks - Applied Digital must adhere to strict construction timelines; failure to do so could allow CoreWeave to terminate leases without penalties [5] - Delays are common in large-scale construction projects, particularly for complex data centers, raising concerns about the company's ability to meet deadlines [7] Investment Outlook - While there is potential for significant upside if operations proceed smoothly, the high level of debt and associated risks make the investment landscape precarious [6]

Core Viewpoint - Applied Digital is capitalizing on the AI data center boom, but achieving significant growth to a $100 stock price hinges on effective execution, margins, and cash flow [1] Group 1: Company Performance - Applied Digital is scaling AI data centers at a rapid pace, positioning itself as a leader in the industry [1] - The company's future stock price growth is contingent upon its ability to manage operational execution flawlessly [1] Group 2: Investment Considerations - Investors need to understand the catalysts that could drive the company's growth, as well as the associated risks [1] - Key factors influencing the company's performance include margins and cash flow management [1]

Applied Digital Corporation (NASDAQ:APLD) is one of the worst AI stocks to invest in according to Reddit. On January 28, Northland analyst Mike Grondahl raised the firm’s price target for Applied Digital to $56 from $40 with an Outperform rating. The upgrade follows management’s commentary during the FQ2 earnings call, which revealed that the company is in advanced negotiations with a new investment-grade hyperscaler. These discussions involve three potential sites and a total capacity of 900 MW, signaling ...

Group 1: Company Overview - Applied Digital has transitioned from providing infrastructure for crypto miners to focusing on building data centers for artificial intelligence (AI) workloads, resulting in significant growth in its share price [1][2] - The company operates as a specialized real estate developer and landlord, constructing facilities and leasing them to tenants running AI servers [2][3] Group 2: Financial Performance - Revenue has surged from $55 million in 2023 to $264 million over the last four reported quarters, indicating strong growth [4] - Applied Digital has secured commitments for up to $16 billion in revenue over the next 15 years, showcasing its potential for future expansion [4] Group 3: Risks and Challenges - The company is currently operating at a loss, with a reported loss of $125 million over the last 12 months, although there is a path to profitability [5] - Debt levels have increased dramatically from just over $42 million in Q1 2024 to nearly $2.6 billion, with a significant portion financed at an interest rate of 9.25% [6] - Heavy reliance on CoreWeave, its largest customer, poses a risk, as CoreWeave is also unprofitable and heavily indebted, which could impact Applied Digital's future lease income [7]

Core Viewpoint - Applied Digital is becoming a significant player in the AI infrastructure market, with its stock price increasing by 400% over the past year due to lucrative long-term lease contracts with cloud infrastructure providers [1]. Group 1: Stock Performance and Analyst Expectations - Analysts predict that Applied Digital's stock will continue to rise, with a 12-month median price target of $43.50, indicating an 18.5% potential upside from current levels [4]. - All 14 analysts covering Applied Digital rate it as a buy, reflecting strong confidence in the company's future performance [4]. Group 2: Financial Metrics and Growth Projections - Applied Digital's market capitalization is currently $9.8 billion, with a current stock price of $34.95 [5]. - The company has signed lease contracts worth $16 billion for 600 megawatts of AI data center capacity, which is expected to drive significant revenue growth [6]. - Revenue is forecasted to increase by 61% in the current fiscal year to $347 million, with a projected growth of 65% in the next fiscal year, potentially reaching $573 million [9][11]. Group 3: Revenue Recognition and Future Capacity - Applied Digital has begun recognizing lease revenue and anticipates a ramp-up in lease revenues over the next quarter, with expectations for meaningful revenue growth over the next 18 to 24 months [7]. - The company is also developing a new 430 MW data center campus and is in discussions to contract this capacity, indicating solid growth prospects beyond 2026 [7]. Group 4: Valuation and Market Potential - The stock currently trades at 32 times sales, a multiple justified by its strong revenue pipeline, with the potential for the market cap to reach $18.3 billion, nearly 80% above the current stock price [12].

McKinsey projects global data center investments will hit nearly $7 trillion by 2030, and every tech giant from Microsoft to Meta is scrambling to secure capacity. Applied Digital (NASDAQ: APLD) has positioned itself as a pure-play beneficiary of this megatrend, and the stock has exploded over the past 18 months. But after digging into the financials and reading the fine print in their SEC filings, I'm staying far away. Despite the tailwinds at its back, three fundamental red flags make this stock far to ...