Applied Digital (US:APLD) Yahoo Finance·2026-03-21 21:09Company Overview - Applied Digital Corporation designs, develops, and operates digital infrastructure solutions for high-performance computing (HPC) and artificial intelligence industries in North America [2] - The company has transitioned from cryptocurrency mining to developing and operating purpose-built, next-generation data centers, particularly in North Dakota, which offers low-cost power and scalable land for mega-campus development [2] Investment Thesis - APLD represents a high-conviction investment opportunity in the rapidly growing AI and HPC infrastructure market [2] - The company benefits from long-term, investment-grade hyperscaler contracts totaling $16 billion over 15 years, providing exceptional revenue visibility and de-risking growth [3] - APLD operates three primary segments: Data Centre Hosting, HPC Hosting, and a cloud business pending spin-out, which allows management to focus on core infrastructure [3] Market Position and Growth Potential - Recent milestones include multi-billion-dollar lease agreements and capital raises totaling $3.1 billion, strengthening its balance sheet and supporting rapid expansion [4] - The market for AI data centers is projected to reach $165.73 billion by 2034, with APLD positioned to capture significant market share through proprietary technologies and strategic relationships [4] Financial Projections - Analysts project revenue of $400–500 million in FY2026, growing to $1.5–2.0 billion by FY2028, with significant free cash flow potential [5] - APLD's current valuation implies a potential upside of 50–100% over the next 12–24 months, making it a compelling buy for growth-oriented investors [5]