Applied Digital Corporation (APLD) up More than 25% Since FQ1 Earnings Release

Core Insights - Applied Digital Corporation (NASDAQ:APLD) has experienced a significant stock surge of over 25% following the release of its FQ1 2026 results on October 9, which reported a revenue of $64.22 million, reflecting a year-over-year increase of 5.79% and exceeding consensus estimates by $18.75 million [1] - Analysts from Lucid Capital and Needham have initiated coverage and raised price targets for APLD, indicating strong market confidence in the company's growth potential [2][3] Company Performance - The revenue of Applied Digital Corporation for FQ1 2026 was $64.22 million, which is a 5.79% increase compared to the previous year [1] - The company outperformed consensus revenue estimates by $18.75 million [1] Analyst Ratings - Joe Flynn from Lucid Capital initiated coverage of APLD with a Buy rating and a price target of $44 [1] - John Todaro from Needham raised the price target for APLD from $21 to $41 while maintaining a Buy rating [3] Industry Positioning - The firm believes that companies like Applied Digital Corporation are well-positioned to benefit from power shortages and related constraints, with favorable supply/demand dynamics [2] - APLD focuses on advanced digital infrastructure, particularly in data centers for blockchain, high-performance computing, and AI applications [3]