1 Incredible AI Stock that Wall Street Thinks Can Soar 59% Over The Next Year

Core Insights - Wall Street identifies Applied Digital (NASDAQ: APLD) as a stock with significant upside potential, currently trading at approximately $28.50 per share with an average price target of $45.27, indicating nearly 60% upside [1][2] Company Overview - Applied Digital specializes in building and operating data centers, a sector experiencing rapid growth due to increasing demand for artificial intelligence (AI) technologies [2] - The company is currently constructing multiple data centers, with existing contracts for computing capacity, indicating strong demand for its services [2][4] Project Details - The Polaris Forge 1 facility has an initial capacity of 100 megawatts (MW), with plans to expand to a total of 400 MW through two additional phases [3] - A second facility, Polaris Forge 2, is under construction and will add another 200 MW of computing capacity [3] Market Position - As Applied Digital continues to develop its facilities, it is expected to attract more clients seeking turnkey solutions for AI workloads, potentially leading to substantial gains for shareholders [4] Financial Considerations - The company is financing its expansion through debt, which is common in the real estate sector, and is signing long-term leases of 15 years [5] - In Q2, Applied Digital raised $2.35 billion at a 9.25% interest rate, which may raise concerns among investors regarding the cost of financing and the perceived risk associated with the loan [6]