Applied Digital shares soar 272% in a year, but lumpy earnings, valuation risks and tenant exposure cloud near-term gains.
Applied Digital leans into liquid cooling, compressed build cycles and a fully leased Ellendale campus as hyperscaler AI demand tightens power and timing.
Applied Digital (NASDAQ:APLD) is a digital infrastructure firm that designs, constructs, and operates AI-focused data centers and high-performance computing (HPC) facilities. The stock has increased by nearly 22% over the past five trading days and is up approximately 4x year-to-date.
AI data centers will consume a substantial amount of power, enhancing the growth prospects for Applied Digital. It has secured a major deal to supply data center capacity to CoreWeave, with more deals potentially to come.
Applied Digital (Nasdaq: APLD) and CoreWeave (Nasdaq: CRWV) reported earnings showing two companies attacking AI infrastructure from opposite ends.
Applied Digital's pivot to AI data centers, with $16B in long-term leases, signals a shift from crypto fit-out to recurring rent.
Applied Digital Corporation energized the first 100MW building at Polaris Forge 1, advancing toward its 400MW campus goal. APLD invested $25 million in Corintis to access advanced chip-level liquid cooling, targeting efficiency gains for AI data centers. Corintis technology could enable denser AI racks and support next-gen GPUs, with pilot deployment expected by late 2026 or early 2027.
Applied Digital's AI-focused data center build-out gains traction as new capacity comes online, setting the stage for potential long-term revenue growth.
Shares of Applied Digital NASDAQ: APLD rose by 12.8% on Nov. 24, a significant move that caught the attention of investors in the artificial intelligence (AI) sector. This was not a rally based on hype, but a direct market reaction to a tangible achievement: the company announced that its first 100-megawatt (MW) building at the Polaris Forge 1 campus in North Dakota is officially Ready for Service (RFS).
The evolution of artificial intelligence (AI) is tied to physical infrastructure. Every breakthrough in AI models, training speeds, and inference workloads requires massive amounts of power, cooling, and compute capacity.
APLD's new Polaris Forge 2 campus targets gigawatt-scale AI infrastructure as rising demand meets development constraints.
APLD moves forward on its AI infrastructure roadmap as Polaris Forge builds out and leasing activity supports growth.