Could Buying Applied Digital Today Set You Up for Life?

Core Insights - Applied Digital is transitioning from a Bitcoin mining data center operator to a dedicated AI infrastructure provider [1][3] - The main challenge in AI infrastructure is not GPU supply but the availability of data centers that can handle high power density and advanced cooling needs [3] Company Developments - Applied Digital has been acquiring essential resources such as land, power, construction teams, supply chain contracts, and engineering talent to establish AI-focused data centers [3] - The company has secured a significant lease expansion with CoreWeave, increasing the contract value from $7 billion to $11 billion over 15 years, with expectations of nearly $500 million in annual net operating income from this lease [4] Market Position - Applied Digital is well-positioned to benefit from the projected $350 billion investment in AI data centers by publicly traded hyperscalers by 2025 [3] - The company plans to expand its data center capacity at Polaris Forge 1 beyond 1 gigawatt from 2028 to 2030 and is constructing a 300-megawatt data center at Polaris Forge 2, with plans to scale it to 1 gigawatt [6] Financial Metrics - The current market capitalization of Applied Digital is $9 billion, with a gross margin of 14.46% [5][6] - The company has already leased 200 megawatts of its under-construction capacity for $5 billion in contracted revenues over 15 years [6]