APLD Bulls Eye Upside as Applied Digital Secures Forge Leases and Hyperscaler Talks

APLD Bulls Eye Upside as Applied Digital Secures Forge Leases and Hyperscaler Talks

Michael Donovan, an analyst at Compass Point, has reaffirmed a bullish outlook on Applied Digital Corporation (APLD) by maintaining a Buy rating on the stock. This sentiment underscores a strong belief in the company’s future potential, further bolstered by recent developments.

Donovan’s confidence is anchored in Applied Digital’s successful leasing of its Polaris Forge 1 facility to CoreWeave. This strategic move not only enhances operational capacity but also assures a steady revenue stream. Looking ahead, the company is also working on securing a significant hyperscaler for the Polaris Forge 2 facility, currently under construction. This ongoing development signifies an ambitious growth trajectory for Applied Digital as it seeks to expand its high-performance computing capabilities.

With long-term leases established with CoreWeave at Polaris Forge 1, Applied Digital anticipates substantial contracted revenue, fortifying its financial positioning. The construction of Polaris Forge 2 and negotiations with a major hyperscaler signal the company’s readiness to utilize market opportunities effectively. These developments, coupled with the growing demand for high-density rack loads, provide a solid foundation for investor confidence, leading to a raised price target of $30.

In a related note, Roth MKM has also maintained a Buy rating on APLD, setting an even more optimistic price target of $43. This consensus among analysts highlights a promising outlook for Applied Digital as it continues to navigate its growth strategy. As the landscape for high-performance computing evolves, companies like Applied Digital are well-positioned to thrive.

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