Roth Capital and Citizens Stay Bullish on Applied Digital Corporation (APLD)

Core Insights - Applied Digital Corporation (NASDAQ:APLD) is recognized as one of the top AI stocks with significant growth potential, receiving a Buy rating from Roth Capital with a price target of $58 [2] - The stock experienced a decline in after-hours trading due to NVIDIA Corporation's decision to sell its stake in APLD, but Roth Capital believes this drop is more related to "headline risk" rather than any fundamental changes in the company's outlook [2][3] Company Developments - APLD has signed two colocation leases, one with CoreWeave, Inc. and another with a hyperscaler, with a third lease anticipated soon [3] - Citizens reiterated a Market Outperform rating on APLD with a price target of $40, highlighting the company's 400 megawatts (MW) of purpose-built capacity at its Polaris Forge 1 Campus, fully leased to CoreWeave [4] - The first 100MW of this capacity is expected to be operational by November 2025, with an additional 150MW ready by mid-2026, and the remaining 150MW projected for 2027 [4] Growth Potential - APLD has secured a 200MW lease with an investment-grade hyperscaler, which includes an option for an additional 800MW, potentially allowing the company to reach a total deployment of 1 gigawatt (GW) [5] - The company boasts a 4.3GW active development pipeline, positioning it as one of the largest high-performance computing (HPC) and AI infrastructure providers in North America [5][6]