Applied Digital Has Fallen Hard Over 1 Year: One Lead Analyst Says It’s Going to Nearly Triple in Price
Key Summary
Applied Digital's stock has fallen 52.99% from its 52-week high, but analysts predict a nearly triple in price due to the company's contracted lease revenue and margin expansion. Lead analyst Rob Brown of Lake Street targets $90 for APLD, implying 277% upside. The company expects to place over 600 megawatts into service over the next 12 months and has a long-term goal of 3.5 to 4 gigawatts by 2030.
Applied Digital Stock Poised for 277% Upside, Analysts Predict
Market Analysis
The stock of Applied Digital has fallen significantly over the past year, but analysts are predicting a strong recovery. The company has contracted lease revenue of $36 billion and is expanding its margin to 89% NOI. Analyst Rob Brown of Lake Street has a target price of $90, implying 277% upside. The company is building and renting AI data center campuses to hyperscalers, and its legacy segment hosts 286 megawatts of Bitcoin mining in North Dakota.
Company Profile
Applied Digital has a market capitalization of $3.4 billion and is listed on the NASDAQ. The company's debt is near $6.4 billion against $1.6 billion of equity.
Industry Analysis
The AI data center market is growing rapidly, with demand for hyperscalers' data center capacity increasing. Applied Digital is well-positioned to capitalize on this trend, with its power pipeline bringing dense AI compute online ahead of rivals stuck in grid queues.
Outlook
The company expects to place over 600 megawatts into service over the next 12 months, compared to 250 megawatts over the past 12. It also expects about 250 megawatts of expansion rents by calendar year end, with a long-term goal of 3.5 to 4 gigawatts by 2030. The consensus target sits above the stock's 52-week high, and one analyst cut fiscal 2028 EPS estimates over the trailing 30 days.