Core Insights - Applied Digital Corporation (NASDAQ: APLD) is recognized as one of the best AI stocks to buy under $50, focusing on next-generation digital infrastructure for HPC and AI workloads [1] - The company has entered into a loan facility with Macquarie Group to fund pre-lease development costs for new data center projects [1][2] - APLD is in advanced negotiations with an investment-grade hyperscaler for multiple campuses and plans to draw an initial $100 million from the loan facility [2] - The financing is aimed at supporting the development of purpose-built campuses for hyperscale customers as demand for AI-optimized data center infrastructure grows [3] - APLD plans to spin off Applied Digital Cloud through a merger with EKSO Bionics Holdings Inc., creating a new company called ChronoScale focused on AI workloads [4] - Analysts have a consensus Buy rating on APLD, with an average price target of $40.50, indicating a potential upside of 68.40%, and a Street-high target of $56, suggesting an upside of 132.85% [5]

Core Insights - Applied Digital Corporation (NASDAQ: APLD) has seen a significant stock price increase of 14.64% to close at $28.11, driven by renewed investor interest in artificial intelligence despite the absence of new catalysts [1] - The company successfully spun off its cloud computing and data center businesses to focus on its core strengths [1] Group 1 - The merger with EKSO Bionics Holdings Inc. aims to create a focused platform for AI workloads, with Applied Digital owning 97% of the combined firm [2] - EKSO Bionics will seek potential buyers for its business and assets as part of the merger [2] - The transaction is designed to meet the growing demand for GPU-accelerated cloud infrastructure in a capacity-constrained market [2]

Core Insights - Applied Digital's revenue increased significantly from $8.5 million in fiscal 2022 to $144.2 million in fiscal 2025, excluding its cloud business [1] - The company is spinning out its cloud business, Sai, to merge with EKSO Bionics Holdings, forming a new entity called ChronoScale, while retaining a 97% ownership [2] - Despite rapid growth, Sai was unprofitable and conflicted with Applied Digital's strategy to evolve into a stable REIT [3] Business Model - Applied Digital operates data centers, leasing them to companies that install their own servers, initially focusing on Bitcoin miners before pivoting to cloud, HPC, and AI markets in 2022 [5] - The company launched a subsidiary, Sai Computing, in 2023 to offer cloud-based AI services using Nvidia's latest GPUs [4] Financial Performance - The stock price surged over 270% in the past year, driven by growth, new lease agreements, and the planned transformation into a REIT [7] - However, net losses widened from $23.5 million in fiscal 2022 to $233.7 million in fiscal 2025 due to expansion and increased GPU purchases [8] Expansion Plans - Applied Digital is expanding its Polaris Forge 1 campus, with a new 100 MW AI/HPC data center completed and plans for additional 150 MW buildings [9] - The company has contracted approximately $16 billion in lease payments over the next 15 years, primarily from CoreWeave, indicating strong demand for its data centers [10] Market Outlook - Analysts expect revenue for fiscal 2026 to rise by 38% to $297.3 million, with a narrowed net loss of $91.1 million, although current estimates may be unreliable due to the inclusion of the cloud business [11] - The potential for over $1 billion in annual revenues exists after campus expansions, but profitability may take two to three years [12] Valuation Considerations - Applied Digital's stock may experience moderate growth in the next year, but it is not yet a stable income-generating REIT like Digital Realty and Equinix [14] - Analysts may lower near-term estimates following the spin-off of ChronoScale, suggesting a cautious approach to investment [15]

Core Viewpoint - Applied Digital Corporation is expected to report a quarterly loss of 22 cents per share for Q2 2026, compared to a loss of 6 cents per share a year ago, with projected revenue of $82.22 million, up from $63.87 million the previous year [1] Group 1: Earnings Expectations - The company will release its earnings results for Q2 2026 on January 7, 2026 [1] - Analysts predict a quarterly loss of 22 cents per share, a significant increase from the previous year's loss of 6 cents per share [1] - The consensus estimate for quarterly revenue is $82.22 million, reflecting a year-over-year increase from $63.87 million [1] Group 2: Business Developments - On December 29, 2025, the company announced plans to spin out its cloud business and proposed a business combination with EKSO to launch ChronoScale [2] - Following this announcement, Applied Digital shares increased by 1.8%, closing at $24.52 [2] Group 3: Analyst Ratings - Northland Capital Markets analyst Mike Grondahi maintained an Outperform rating with a price target of $40 [4] - Lake Street analyst Rob Brown maintained a Buy rating with a price target of $45 [4] - Needham analyst John Todaro maintained a Buy rating with a price target of $41 [4] - Craig-Hallum analyst George Sutton raised the price target from $37 to $39 while maintaining a Buy rating [4] - HC Wainwright & Co. analyst Kevin Dede raised the price target from $20 to $40 while maintaining a Buy rating [4]

Core Insights - Airbus has confirmed it will release audited end-year commercial data on January 12, indicating confidence in its revised delivery target of "around 790" aircraft [1] Group 1 - Airbus is set to issue audited end-year commercial data, which reflects a positive outlook for the company [1] - The revised target for aircraft deliveries stands at approximately 790, suggesting a strategic adjustment in operational goals [1]

Core Viewpoint - Bitcoin has surpassed $88,000, leading to a rise in certain cryptocurrency mining stocks [1] Group 1: Company Performance - TeraWulf (WULF.US) has seen an increase of nearly 5% [1] - Applied Digital (APLD.US) has risen by over 3% [1] - Cipher Mining (CIFR.US) has gained more than 1.7% [1]

Core Insights - Applied Digital (APLD) announced a strategic spinoff to enhance its position in the AI infrastructure market by merging its cloud computing division with EKSO Bionics Holdings to form ChronoScale Corporation, which will focus on AI workloads [1][3] Company Developments - The transaction structure allows Applied Digital to retain approximately 97% ownership of the new entity, enabling it to spin out its cloud business while maintaining significant control [2] - ChronoScale will serve as a standalone platform for GPU-intensive AI training and inference workloads, allowing both Applied Digital and ChronoScale to pursue independent growth strategies with increased capital flexibility [3] Financial Performance - Applied Digital's market capitalization is currently valued at $6.88 billion, with its stock price having more than tripled in the past year, although it is down nearly 40% from its 52-week high [4] - The company is transitioning from a cryptocurrency mining operation to a key player in the AI infrastructure sector, having secured billions in long-term contracts that provide revenue visibility [5] Infrastructure Development - The flagship data center, Polaris Forge 1, is a 400-megawatt facility leased to CoreWeave under a 15-year agreement valued at approximately $11 billion, with a subsequent $5 billion deal for Polaris Forge 2 with an unnamed investment-grade hyperscaler customer [6] - Applied Digital is constructing data centers in North Dakota, where electricity costs are 24% below the national average, which is advantageous given the high power consumption of AI queries compared to traditional internet searches [7]

Core Viewpoint - Bitcoin has reached $88,000, leading to a rise in certain cryptocurrency mining companies [1] Company Performance - TeraWulf (WULF.US) has increased by nearly 5% [1] - Applied Digital (APLD.US) has risen by over 3% [1] - Cipher Mining (CIFR.US) has gained more than 1.7% [1]

Northland is establishing Applied Digital (APLD) as the analyst’s Top Pick for 2026, citing the belief that Applied is strategically positioned to outperform its peers next year given continued demand for power by hyperscalers, its ability to execute on schedule, its significant pipeline of power assets, and its medium-term REIT model. The firm has an Outperform rating and $40 price target on Applied shares. Claim 70% Off TipRanks This Holiday Season Published first on TheFly – the ultimate source for re ...

Group 1 - Application Digital's stock price is projected to increase by approximately 215% by 2025 due to a growing number of contracts with AI developers, highlighting the demand for its data centers [1][2] - Hut 8's stock price has surged by about 126% this year, driven by partnerships in AI infrastructure and expansion announcements that reposition the company as a provider of data centers and high-performance computing [2] - Coreweave's stock price has risen approximately 85% this year, propelled by significant cloud computing contracts with clients like Meta and OpenAI [2] - Oracle's stock price increased by about 18% in 2025, mainly due to its collaboration with OpenAI on the Stargate project, although concerns remain regarding bond issuance for future capital expenditures [2] - Equinix's stock price has declined by approximately 18% this year, attributed to delays in completing a major revenue-boosting transaction and a downward revision of its annual revenue forecast [2] - The Global X Data Center & Digital Infrastructure ETF has risen about 28% this year, outperforming the S&P 500 index, which has increased by approximately 17% [2]