Applied Digital Corporation (APLD)

In the past six months, Applied Digital's stock has experienced significant events. The completion of Phase II at Polaris Forge 1 and a newly secured US$5 billion lease at the Polaris Forge 2 campus led to an 8.0% increase in the stock price on November 27, 2025. Concerns about the company's financial health, particularly rising borrowing costs and a recent $2.35 billion bond issuance, have led to skepticism and volatility. The stock experienced a dramatic rise and fall, with a sharp wave of selling cutting its valuation nearly in half, though a modest rebound occurred in late November 2025. Applied Digital reported strong Q1 2025 earnings, beating consensus estimates for EPS and revenue, with revenue up 84.3% year-over-year. Analyst ratings have generally been positive, with a consensus of "Strong Buy" or "Moderate Buy" and an average price target of around $26.20 to $42.78. Insider selling by a director in October 2025 also occurred.

Demand for Applied Digital's products and services is generally driven by the continuous and accelerating growth of the AI industry. The company's long-term contracts with hyperscalers for AI infrastructure suggest a relatively stable, long-term demand rather than significant short-term seasonality. Applied Digital's strategic shift to AI infrastructure aims to diversify its revenue streams and reduce reliance on the cyclical nature of the crypto market. The need for high-performance computing and AI applications is a continuous and growing trend, suggesting less pronounced seasonality compared to its earlier crypto-focused business.

Applied Digital Corporation designs, develops, and operates digital infrastructure solutions for the high-performance computing (HPC) and artificial intelligence (AI) industries in North America. The company operates through its Data Center Hosting Business and HPC Hosting Business segments, providing infrastructure services to cryptocurrency mining customers and GPU computing solutions for AI, machine learning, and other HPC tasks. Applied Digital specializes in designing, constructing, and managing data centers. The company rebranded from Applied Blockchain, Inc. in November 2022 to focus on becoming a critical infrastructure provider for the AI revolution.

Applied Digital Corporation's geographic footprint is concentrated in North America, with its headquarters in Dallas, Texas. The company operates three data centers, with two currently operational and one upcoming. Its data centers are strategically located in North Dakota (Ellendale and Harwood) and Iowa (Adair), chosen for access to abundant and often renewable energy sources, favorable climates for cooling, and strong foundations for expansion. Key facilities include Polaris Forge 1 in Ellendale, North Dakota, and Polaris Forge 2 near Harwood, North Dakota.

In the past year, Applied Digital's brand reputation has been shaped by its strategic pivot towards AI infrastructure and its execution on large-scale data center projects. The company has been recognized for its role as a critical infrastructure provider for AI and HPC, with its facilities designed for high-density GPU deployments and located near renewable energy sources. Applied Digital was named "Best Data Center in the Americas 2025" by Datacloud. However, the company has also faced scrutiny regarding its financial health, particularly high borrowing costs and significant debt from bond issuances to fund its expansion. Concerns about client concentration risk and the rapid rise and subsequent volatility of its stock price have also been noted.

Applied Digital Corporation's ownership structure includes institutional, individual, and retail investors. Institutional investors hold a significant portion, with some reports indicating over 50% ownership. Major institutional owners include Hood River Capital Management LLC, BlackRock, Inc., Vanguard Group Inc, D. E. Shaw & Co., Inc., Jane Street Group, Llc, Susquehanna International Group, Llp, and Nvidia Corp. Wes Cummins, the CEO, is the largest individual shareholder, owning approximately 13.59% of the company's shares. The general public, primarily individual investors, holds about 15% of the ownership.