Polaris Forge 2

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APLD Trades Higher Than Industry at 13.5X P/S: Is the Stock a Buy?
ZACKS· 2025-08-26 16:41
Core Insights - Applied Digital (APLD) shares are currently overvalued with a Value Score of F, trading at a forward 12-month Price/Sales (P/S) ratio of 13.5X compared to the industry average of 3.5X [1] - APLD's stock has increased by 109% year-to-date, significantly outperforming the industry return of 5.6% and the Zacks Finance sector's 12.5% appreciation [3] - The company has secured $11 billion in contracted revenue through a 15-year AI infrastructure deal with CoreWeave, indicating strong demand for its services [6][9] Financial Performance - Fiscal Q4 revenue rose 41% year-over-year to $38 million, driven by increased data center capacity and strong AI demand [6][11] - Fiscal 2025 revenues reached $144.2 million, a 6% increase from the previous year, with CoreWeave agreements underpinning sustained demand growth [11] - Adjusted EBITDA for Q4 of fiscal 2025 was $1 million, reflecting improved operational efficiency compared to a loss of $0.2 million in the prior year [16] Strategic Developments - The partnership with CoreWeave has validated APLD's strategic shift from cryptocurrency mining to AI-optimized data center infrastructure, providing unprecedented revenue visibility [10] - APLD is expanding its data center footprint with purpose-built facilities for AI workloads, including the Polaris Forge 1 campus designed to scale to 1 gigawatt [14][15] - The upcoming Polaris Forge 2 project, a $3 billion AI factory, is set to break ground in September 2025, further enhancing APLD's capabilities in the AI infrastructure sector [17] Market Position - APLD's stock is trading above the 50-day and 200-day moving averages, indicating a bullish trend [7] - The company is positioned to compete effectively in the rapidly growing AI infrastructure sector due to its strategic location in North Dakota, which offers low-cost energy and efficient cooling solutions [15] - APLD's premium valuation is supported by its transformational partnership with CoreWeave and the accelerating buildout of AI-focused infrastructure [19]
Can Polaris Forge 2 Fuel the Next Leg of Growth for APLD Stock?
ZACKS· 2025-08-22 18:17
Core Growth Driver - Applied Digital's hyperscale hosting business is the main growth driver, fueled by increasing AI infrastructure demand and commitments from leading hyperscalers [1][2] - The company plans to start construction on Polaris Forge 2, a $3 billion, 280-megawatt AI Factory in September 2025, with initial operations expected in 2026 and full capacity by early 2027 [1][8] Revenue and Financial Performance - In Q4 of fiscal 2025, Applied Digital reported revenues of $38 million, a 41% increase year-over-year, driven by strong capacity additions [3] - Polaris Forge 1 has secured long-term leases with CoreWeave, covering 400 MW and approximately $11 billion in contracted revenues, setting a strong foundation for Polaris Forge 2 [2][8] Competitive Landscape - Applied Digital faces competition from established data center operators like Equinix and Digital Realty Trust, which have significant scale and diversified customer bases [4][5] - Equinix operates over 260 data centers globally, providing a strong interconnection platform, while Digital Realty Trust focuses on hyperscale developments across multiple regions [4][5] Share Price and Valuation - Applied Digital's shares have appreciated 106.4% year-to-date, significantly outperforming the broader Zacks Finance sector and the Zacks Financial - Miscellaneous Services industry [6] - The company is trading at a forward 12-month Price/Sales ratio of 13.4X, compared to the industry's 3.36X, indicating a premium valuation [10] Earnings Estimates - The Zacks Consensus Estimate for Applied Digital's first quarter fiscal 2026 loss is 6 cents per share, reflecting a decline from the previous year's loss of 3 cents per share [13] - The consensus for fiscal 2026 loss is pegged at 21 cents per share, suggesting a 73.75% year-over-year improvement [13]
Why Applied Digital Stock Zoomed on Monday
The Motley Fool· 2025-08-18 18:34
Core Viewpoint - Investors are primarily attracted to Applied Digital Corporation for its significant revenue growth rather than its current profitability [5]. Group 1: New Data Center Announcement - Applied Digital announced the construction of a new data center named "Polaris Forge 2," which is a $3 billion investment in North Dakota [3]. - The new data center is designed to operate at 280 megawatts of power to meet the increasing demand for AI computing [3]. - Construction is set to begin in September, with the facility expected to open in 2026 and reach full capacity by early 2027 [3]. Group 2: Business Prospects - The company has reported strong interest from multiple parties, including at least one U.S.-based investment-grade hyperscaler, to lease capacity at the new data center [4]. - Applied Digital has secured power through Cass County Electric Cooperative, ensuring operational readiness for the new facility [4]. Group 3: Financial Performance - Revenue for Applied Digital more than doubled last year and has increased by 1500% over the past two years [5]. - Despite the impressive revenue growth, the company is currently not profitable, with analysts predicting it will not achieve profitability before 2028 [5].
Applied Digital to Break Ground on $3 Billion Polaris Forge 2 Campus in September 2025, Expanding North Dakota’s Role as a National AI Infrastructure Leader
Globenewswire· 2025-08-18 12:00
Core Viewpoint - Applied Digital Corporation is set to expand its AI infrastructure with the construction of Polaris Forge 2, a $3 billion, 280MW AI Factory in Harwood, North Dakota, aimed at meeting the increasing demand for AI computing capacity [3][4][5]. Company Overview - Applied Digital Corporation (Nasdaq: APLD) specializes in designing, building, and operating high-performance data centers for AI, cloud, networking, and blockchain workloads [10]. - The company has been recognized as the Best Data Center in the Americas 2025 by Datacloud [10]. Project Details - Polaris Forge 2 will have an initial capacity of 280MW, with plans to scale beyond this capacity, and is scheduled to begin operations in 2026, reaching full capacity in early 2027 [3][4]. - The project will cover more than 900 acres and is expected to employ over 200 full-time employees once fully operational [5]. Market Demand - There is a surging demand for AI computing capacity from hyperscalers, enterprises, and research organizations, necessitating scalable and high-performance infrastructure [4][5]. - North Dakota is becoming a strategic location for AI infrastructure due to its abundant energy resources, available land, and pro-business climate [4][9]. Community Impact - The expansion into Harwood is expected to strengthen local communities and contribute to the economy, with commitments to workforce housing and local partnerships [5][9]. - Local officials, including the Governor and Mayor of Harwood, have expressed support for the project, highlighting its potential to drive technological progress and economic benefits for the region [5][9].
Applied Digital to Break Ground on $3 Billion Polaris Forge 2 Campus in September 2025, Expanding North Dakota's Role as a National AI Infrastructure Leader
GlobeNewswire News Room· 2025-08-18 12:00
Core Insights - Applied Digital Corporation plans to break ground on Polaris Forge 2, a $3 billion, 280-megawatt AI Factory in North Dakota, with initial capacity expected in 2026 and full capacity by early 2027 [2][3][4] - The project aims to meet the surging demand for AI computing capacity from hyperscalers, enterprises, and research organizations, building on the success of the existing Polaris Forge 1 campus [3][4] - The new facility will occupy over 900 acres and is expected to create more than 200 full-time jobs, contributing to the local economy and community development [4][5][6] Company Developments - Polaris Forge 2 is seen as a strategic move for Applied Digital to enhance its leadership in high-performance AI infrastructure [4][7] - The company has secured power through Cass County Electric Cooperative, ensuring reliable energy supply for the new facility [5][6] - The expansion into Harwood is part of a broader commitment to invest in local communities and create long-term economic opportunities [7][8] Industry Context - North Dakota is emerging as a key destination for AI infrastructure due to its abundant energy resources, available land, and supportive business environment [3][6][8] - The demand for AI capacity is accelerating, indicating a growing market for high-performance computing solutions [3][4] - The project aligns with the trend of technological progress and community investment, positioning North Dakota favorably in the AI infrastructure landscape [6][7]