Core Viewpoint - Applied Digital Corporation (NASDAQ: APLD) is experiencing a significant upward trend in its consensus price target, indicating growing optimism among analysts regarding the company's future performance [1][6]. Price Target Trends - The average price target for APLD has increased from $34.64 a year ago to $45 last month, reflecting a strong upward trend in analyst expectations [4][6]. - In the last quarter, the average price target was $40.5, showing a steady increase and indicating growing optimism about the company's prospects [3]. Revenue Growth Potential - Analysts are optimistic about APLD's potential revenue growth in 2026, driven by increasing demand from hyperscalers and the operational status of Polaris Forge 1 [2]. - The company's lease revenue is expected to significantly enhance its top line, bolstered by a new contract [3]. Strategic Initiatives - The increase in the consensus price target can be attributed to the company's strategic initiatives and its focus on high-performance computing and artificial intelligence industries [5]. - The rebranding from Applied Blockchain, Inc. to Applied Digital Corporation in November 2022 may have contributed to a renewed focus and positive outlook from analysts [5]. Upcoming Earnings - The upcoming release of fiscal 2026 Q2 results is highly anticipated by investors and analysts, as it will provide insights into the company's financial performance and future prospects [4].

Key Takeaways APLD is moving from development to revenues as Polaris Forge 1 begins operations and new AI campuses scale.Zacks Consensus Estimate pegs APLD's 2026 revenue at $280.9M, implying 26.99% year-over-year growth.APLD's ability to convert new AI campuses into revenue will be tested as multiple sites scale simultaneously.Applied Digital (APLD) stands at a pivotal juncture as its expanding AI infrastructure portfolio transitions from development to revenue generation. With Polaris Forge1 beginning ope ...

As the first full week of 2026 kicks off, the earnings calendar features a mix of early reports in the cannabis, AI infrastructure and consumer goods sectors.TLRY stock has been moving. See the chart and other details here. Investors are looking for clues on how companies are navigating a complex start to the year, marked by geopolitical shifts in South America and the massive CES 2026 tech conference in Las Vegas.Monday and Tuesday will pass with no notable reports to watch. Read Next: What To Expect At CE ...

Company Overview - Applied Digital Corporation operates in the technology infrastructure market, focusing on digital infrastructure for high-demand computing applications, particularly supporting AI and HPC workloads through specialized data centers and cloud services [5] - The company generates revenue through infrastructure services for crypto mining, GPU computing solutions, and the design, construction, and management of data centers, serving enterprise clients in AI, machine learning, and HPC sectors across North America [6] Financial Performance - As of September 30, Applied Digital reported a revenue of $64.2 million for the fiscal third quarter, reflecting an 84.3% year-over-year increase [10] - The company has a market capitalization of $6.34 billion and a total revenue of $219.02 million for the trailing twelve months (TTM), with a net loss of $225.71 million [4] Stock Performance - As of November 13, shares of Applied Digital were priced at $23.06, which is a 221.6% increase over the past year [3] - The stock has gained 231.4% over the last year, significantly outperforming the S&P 500 index's 17.7% return and the Nasdaq Composite's 20% [9] Investment Activity - Hood River Capital Management LLC sold 812,377 shares of Applied Digital during the third quarter, reducing its position by 3.7%, while the remaining stake stands at 21,046,654 shares valued at $482.8 million, representing 5.7% of the fund's assets under management [2][3][9]

Key Points Applied Digital builds data center campuses for cloud and AI companies. Nebius provides customized AI infrastructure services for a wide range of industries. One of these companies is growing faster and trading at more attractive valuations. 10 stocks we like better than Applied Digital › Applied Digital (NASDAQ: APLD) and Nebius (NASDAQ: NBIS) represent two distinct investment options in the rapidly growing artificial intelligence (AI) market. Applied Digital builds data center campuse ...

Core Insights - Applied Digital (APLD) is restructuring its operations to focus on high-performance compute hosting, supported by long-term leases and a sustainable financing model [1] - The company operates two segments: a legacy Data Center Hosting Business and a High-Performance Compute Hosting Business, with the latter being the main growth driver [1] Segment Developments - At the Polaris Forge 1 campus, the expansion has reached a fully leased capacity of 400 MW with CoreWeave as the sole tenant, with lease revenue expected to start from late 2025 [2] - Polaris Forge 2 is under construction, with an initial capacity of 300 MW expected to be operational by 2026, and a U.S. investment-grade hyperscaler has leased 200 MW [2] Funding and Construction - APLD is utilizing asset-level financing structures to minimize corporate dilution, having drawn $112.5 million from a preferred equity facility and secured $50 million in equipment financing [3] - The company has 700 MW under construction across its campuses, with a targeted build cycle of 12 to 14 months [3] Revenue Transition - Current revenues are primarily from low-margin tenant fit-outs, but as facilities become operational, revenue will shift to multi-year lease agreements, enhancing earnings visibility [4] - APLD anticipates approximately $11 billion in contracted lease revenues from Polaris Forge 1 and about $5 billion from Polaris Forge 2 over 15 years [5] Financial Projections - The Zacks Consensus Estimate for fiscal 2026 revenues is $280.9 million, indicating a 30.4% growth from fiscal 2025, with an expected loss of 31 cents per share [6] - APLD's stock has increased by 187.1% over the past year, significantly outperforming the broader Zacks Finance sector [7] Competitive Landscape - APLD faces competition from major data center operators like Equinix, emphasizing the need for speed and innovative cooling designs in AI-focused infrastructure [8] - The company is transitioning from low-margin fit-outs to multi-year leases, with a total of $16 billion in leases across its Polaris Forge campuses [8]

Core Insights - Applied Digital stock is expected to rise significantly following the release of its upcoming quarterly report, having already seen a remarkable 215% increase in 2025 due to high demand for AI infrastructure [1][3] - The company is positioned in the AI infrastructure boom, focusing on designing and operating data centers for high-performance computing and AI workloads, leading to rapid revenue growth [2] Financial Performance - Applied Digital has consistently outperformed Wall Street's earnings expectations, reporting smaller losses than anticipated, driven by strong revenue growth [5] - In the first quarter of fiscal 2026, revenue increased by 84% year-over-year to $64 million, surpassing the $50 million consensus estimate, aided by a significant contract with CoreWeave [6] - The company has completed the fit-out of 100 megawatts (MW) of HPC hosting capacity for CoreWeave, with a 15-year lease contract expected to contribute $11 billion to revenue over its lifetime [7] Future Projections - Analysts forecast a 29% year-over-year revenue increase to $82.2 million for the recently concluded fiscal Q2, with expectations that Applied Digital will exceed these estimates [9] - The stock is currently trading at a high valuation of nearly 33 times sales, but the company's growth potential and revenue pipeline justify this valuation [10] - If Applied Digital achieves the projected $970 million revenue in the coming years and trades at a discounted 10 times sales, its market cap could increase by 44% to $9.7 billion [12] Investment Consideration - The current pullback in stock price presents a potential buying opportunity, as the company is poised for significant growth following its upcoming results [13]

Group 1 - Applied Digital Corp. (NASDAQ: APLD) experienced a significant increase of 16.88% week-on-week as investors anticipated its second-quarter fiscal year 2026 earnings results [1] - The company is set to release its financial and operational highlights after market close on January 7, with a conference call planned to discuss the results [2] - Applied Digital has initiated a restructuring process, creating two separate entities for its cloud computing and data center businesses [3] Group 2 - The restructuring strategy includes a merger with EKSO Bionics Holdings Inc., which will be renamed ChronoScale, focusing on an accelerated compute platform for AI workloads [4] - Following the merger, Applied Digital will own 97% of the combined firm, while EKSO Bionics will seek potential buyers for its business and assets [4] - The proposed transaction aims to establish a focused platform to meet the growing demand for GPU-accelerated cloud infrastructure in a capacity-constrained market [5]

News over the weekend added a fresh dose of geopolitical uncertainty for investors to digest as the first full week of trading in 2026 gets underway. In the early-morning hours Saturday, the U.S. launched a military strike on Venezuela and extracted President Nicolás Maduro in order for him to face criminal charges in the U.S. President Donald Trump later said that the U.S. would "run" Venezuela until an orderly transition is possible, and that U.S. oil companies would rebuild the oil infrastructure of the ...

Core Viewpoint - The stock of Applied Digital has significantly benefited from the ongoing investment cycle in AI data centers, showcasing remarkable growth and potential for future revenue increases [1][2]. Group 1: Company Overview - Applied Digital specializes in designing, building, and operating high-performance data centers that cater to heavy GPU workloads [4]. - The company initially focused on blockchain applications but pivoted to AI workloads in 2023, leading to substantial revenue growth [5]. Group 2: Financial Performance - Since the beginning of 2023, Applied Digital's stock has surged by 1,200%, with analysts projecting revenues of $552 million in 2026, an 86% increase from the estimated $297 million in 2025 [2][8]. - The company is currently experiencing a boom in data center spending, with total data center capacity demand expected to increase by nearly 300% by 2030 [7]. Group 3: Capital Expenditures and Debt - Applied Digital is heavily investing in building data centers, leading to significant capital expenditures and an increase in long-term debt, which currently stands at approximately $700 million [11]. - The company has increased its share count by 196% over the past three years, raising concerns about share dilution and the sustainability of its financial model [11]. Group 4: Market Position and Valuation - The current market capitalization of Applied Digital is approximately $7.9 billion, with a price-to-sales ratio nearing 13 times the 2026 revenue estimates, indicating a potentially high valuation relative to its revenue growth [12][13]. - The company is currently incurring cash losses, which raises questions about its long-term profitability and the feasibility of its growth strategy [14].