Applied Digital Corporation (APLD) is a Dallas-based designer, builder, and operator of next-generation, high-performance AI data centers, purpose-built for the hyperscale AI infrastructure revolution. Named “Best Data Center in the Americas 2025” by Datacloud, Applied Digital combines hyperscale expertise, proprietary waterless cooling, and rapid deployment capabilities to deliver secure, scalable compute at industry-leading speed and efficiency while creating economic opportunities in underserved communities through its award-winning Polaris Forge AI Factory model.
Having strategically pivoted from blockchain to high-performance computing, the company has now surpassed 1 gigawatt of contracted capacity across multiple campuses, secured a $5 billion funding facility with Macquarie Asset Management, and locked in landmark 15-year leases with CoreWeave (CRWV) and multiple U.S.-based investment-grade hyperscalers, making it one of the most compelling pure-play AI infrastructure construction stories in the public markets.
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Applied Digital’s Bull Run
APLD has delivered an impressive trailing 12-month total return of approximately 226%, with a year-to-date (YTD) total return of approximately 60% in 2026, one of the most remarkable runs in the entire Nasdaq universe. The stock surged from a 52-week low of $9.02 in July 2025 to a high of $50.72 in May 2026, a gain of over 335%, driven by a cascade of hyperscaler lease announcements and capital raises.
Against the Nasdaq Composite's ($NASX) approximately 8-9% YTD return in 2026, APLD has dramatically outperformed the broader index, cementing its status as the defining AI infrastructure construction momentum stock of the current market cycle.
www.barchart.com Applied Digital Results Beat Estimates
Applied Digital reported Q3 FY2026 revenue of $126.6 million, a staggering 139% increase year-over-year (YoY), decisively beating the analyst consensus estimate of $78.1 million by approximately 62%. Adjusted net income came in at $33.2 million, or $0.09 per share, representing a massive beat against the Street estimate of -$0.14 per share, while adjusted EBITDA reached $44.1 million. The revenue surge was driven by the full-period contribution of its first 100 MW HPC data center at Polaris Forge 1, which commenced operations in the prior quarter and ramped rapidly.
On a GAAP basis, the company reported a net loss of $100.9 million, or -$0.36 per share, driven by non-cash stock-based compensation and Cloud business reclassification charges, while cash and equivalents stood at $2.1 billion against total debt of $2.7 billion. Total contracted revenue across all hyperscaler lease agreements has now reached approximately $36 billion, providing extraordinary long-term revenue visibility for a company still in aggressive build-out mode. The company also surpassed 1 gigawatt of contracted capacity, a landmark milestone in its AI factory expansion.
Management guided revenues to "ramp significantly" over the next 12 months as Polaris Forge 1's two 150 MW buildings come online, Polaris Forge 2's 200 MW campus advances, and Delta Forge 1's 300 MW facility targets initial operations in mid-2027, with approximately 900 MW under active construction. The company also surpassed 1 GW of contracted capacity with its latest $7.5 billion, 15-year lease at Polaris Forge 3, with total potential value reaching up to $18.2 billion, including renewal options, a contract portfolio that management says firmly establishes Applied Digital as the partner of choice for the world's most demanding hyperscalers.
Applied Digital Funds Polaris Forge 1 Expansion
Applied Digital announced that its subsidiary, APLD ComputeCo 3, has priced a $1.59 billion offering of 7.000% senior secured notes due 2031 at par, with the transaction expected to close on or around June 16, 2026. The proceeds will be directed toward funding construction and associated expenses for an additional 150 megawatts of critical IT load at the fourth building of Polaris Forge 1, Applied Digital's flagship AI Factory campus located in Ellendale, North Dakota, as well as funding debt service reserves and covering transaction expenses.
The capital raise further underscores Applied Digital's aggressive pace of hyperscale AI infrastructure development and its ability to access institutional debt markets at scale to fund its rapidly expanding campus portfolio.
How to Play APLD Stock?
With the $1.59 billion senior secured notes offering demonstrating Applied Digital's ability to access institutional debt markets at scale and fund its Polaris Forge 1 expansion with confidence, the company's AI factory buildout is accelerating at a remarkable pace. Wall Street is overwhelmingly bullish. APLD stock carries a consensus "Strong Buy" rating across 13 analyst ratings, comprising 11 "Strong Buy," one "Moderate Buy," and one "Strong Sell," with a mean price target of $69.46, implying approximately 73% upside from current levels.
For high-conviction investors seeking leveraged exposure to the AI infrastructure construction supercycle, APLD remains one of the most compelling growth opportunities in the small- to mid-cap space today.
www.barchart.com On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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