📈 Applied Digital Corp (APLD): Is This the Next AI Data Center Powerhouse?

willie smith
Jun 16
2 min read

🧠 Introduction: Why APLD Deserves Attention

In the rapidly evolving world of AI, cloud computing, and high-performance infrastructure, Applied Digital Corp (NASDAQ: APLD) has carved out a unique space. As demand skyrockets for data center hosting and GPU-powered workloads, APLD is scaling aggressively to capture market share.

This blog dives deep into the company’s financials, technical setup, earnings recap, and analyst sentiment to assess whether APLD belongs in your growth portfolio—or if caution is still warranted.

🏢 What Does Applied Digital Do?

Applied Digital builds and operates data centers that serve blockchain, artificial intelligence, and high-performance computing (HPC) clients.

Its business segments include:

Hosting Services (Crypto & Hyperscaler compute)
Cloud Services (GPU-as-a-service for AI clients)
HPC Hosting (Purpose-built infrastructure for AI/ML firms like CoreWeave)

APLD is currently scaling its Ellendale campus to host 300+ MW of power, with a major milestone—the first 100 MW of HPC-ready infrastructure—expected to go live in Q4 of calendar 2025.

📊 Financial Recap: Q3 FY2025 Earnings

Metric	Result	YoY Change
Revenue	$52.9M	+22%
Net Income (GAAP)	–$36.1M	N/A
EPS	–$0.16	Missed by $0.05
Adjusted EBITDA	$10M	Positive
Cash on Hand	$261M	Stable
Debt	$689M	High

🔍 Key takeaway: APLD is investing heavily in infrastructure. While losses persist, cash flow from operations and lease agreements suggest long-term potential.

📈 Technical Analysis: What the Charts Say

Price (June 16): $11.33
Day Range: $10.90 – $11.46
52-Week Range: ~$3.00 – ~$15.00
RS Rating: 98 (per IBD, indicating outperformance vs. 98% of market)
Technical Outlook: TradingView and other tools rate APLD a "Buy" on 1-week and 1-month timeframes.

📉 Buy Indicators

Volume spikes near support
Breakout patterns forming
Strong relative strength vs. peers

📅 Upcoming Catalysts

Next Earnings Report – Estimated for July 24, 2025
Ellendale Campus Phase I Launch – Expected Q4 2025
New Lease Announcements – Like the recent CoreWeave 250MW deal

These could all act as major triggers for upward momentum.

📈 Analyst Ratings & Price Targets

Consensus: Buy / Strong Buy
Average 12-Month Target: ~$12.70
High Target: $20
Recent Upgrades:
- Compass Point: $10 → $13
- B. Riley: $8 → $15
- JMP: Reaffirmed at $18

💡 Analysts like the growth trajectory—if execution matches projections.

🔍 Risk Factors

🚀 Bullish Case	⚠️ Bearish Case
Strong demand for AI infrastructure	Large GAAP losses & high debt
Rising GPU lease revenues	Delays in campus completion
Positive analyst sentiment	Competitive space with major players
RS rating and tech indicators strong	Cash burn continues despite capex cuts

💡 Key Takeaways

APLD is not for conservative investors, but for those seeking high-reward AI exposure, it offers a rare infrastructure angle.
Current technicals suggest a buy zone may be forming—especially if it retests support near $11.
Long-term growth hinges on the success of Ellendale’s rollout and GPU revenue stabilization.