Up 281% YTD, Will Applied Digital Stock Hit $56 in a Year?

Core Insights - Applied Digital (APLD) has experienced a stock increase of over 280% year-to-date, driven by its focus on next-generation data centers for AI, ML, and blockchain applications [1] - The company has secured long-term contracts with hyperscaler tenants, positioning it for significant growth in the capital-heavy infrastructure sector [2] Recent Developments - Applied Digital announced a $5 billion lease agreement with a U.S.-based hyperscaler at its Polaris Forge 2 Campus, which is under construction, covering 200 megawatts (MW) of IT capacity for AI and HPC operations over a 15-year term [4] - Following this announcement, APLD shares surged, indicating strong investor enthusiasm [4] Capacity Expansion - With the addition of Polaris Forge 2, Applied Digital's total leased capacity with two major hyperscalers has reached 600 MW across its campuses in North Dakota, enhancing its reputation in the AI infrastructure market [5] - The company is also expanding its partnership with CoreWeave, increasing its contracted revenue potential to approximately $11 billion through an extended lease agreement at the Polaris Forge 1 facility [6][7]