Applied Digital Corporation ( (APLD) ) has risen by 8.67%. Read on to learn why.
Claim 55% Off TipRanks
Forget margin or options. Here's how the pros trade APLDApplied Digital Corporation’s shares climbed 8.67% over the past week, as investors piled into the fast-growing data center and AI infrastructure story. The company designs and operates high-performance computing facilities tailored to massive artificial intelligence workloads, hosting data centers and providing managed cloud services for clients chasing ever-greater computing power.
The latest leg of the rally has been fueled by a series of bullish analyst calls and a blockbuster long-term contract. Wall Street currently rates Applied Digital a Strong Buy, with analysts projecting further upside despite the stock already gaining nearly 50% since the start of the year. The average price target of around $50 underscores expectations that demand for AI data centers will keep growing.
More specifically, Roth Capital’s Darren Aftahi raised his price target on Applied Digital to $65 from $58 after the company secured a major lease agreement with a new U.S.-based hyperscaler at its 430 MW AI Factory campus, Delta Forge 1. The deal, worth about $7.5 billion over an estimated 15-year term, commits 300 MW of capacity and highlights the appeal of Applied Digital’s efficient, repeatable “AI Factory” model. With construction costs seen as competitive and more potential catalysts ahead, investors are betting that the company is well-positioned at the center of the AI infrastructure boom.