Applied Digital (APLD) is a data center company involved in designing, developing, and operating digital infrastructure solutions and cloud services. The company operates through three main segments: Data Center Hosting, High-Performance Computing (HPC) Hosting, and Cloud Services. 

Incorporated in 2001, the company was initially known as Applied Blockchain until November 2022. It operates in North America with its headquarters in Dallas, Texas.

About Applied Digital Stock

Applied Digital’s stock has seen a solid 70% gain YTD with a massive 141% increase in just the last month. The company’s stock is on a bull run at the moment, gaining more than 28% in the last 5 days and 80% in the past three months. Shares set a new 52-week high on Friday, June 6. 

Applied Digital Lags Estimates

Applied Digital published its fiscal third-quarter results on April 14, with a loss of $0.16 per adjusted share, wider than the analysts’ estimated loss of $0.11 per share. The company posted a 22.1% increase in revenue to $52.92 million against analysts’ $64.48 million estimate. The rise was primarily influenced by the expansion of its Cloud Services segment along with the deployment of extra GPU clusters in the quarter.

The company’s Cloud Services segment grew 220% year-over-year to $17.8 million while its Data Center Hosting business generated $35.2 million in revenue, down 7%. Adjusted EBITDA came to $10 million, up from a loss of $1.3 million posted in the same quarter last year. 

The company ended the quarter with a cash balance of $261.2 million against a debt of $689.1 million.

Shares of Applied Digital slid more than 35% following its quarterly results.

Applied Digital Is a Top Data Center Pick

Based on analyst ratings tracked by Barchart.com, Applied Digital is a top data center pick.

The company has solidified its position in the market through its strategic focus on high-performance computing and AI-driven infrastructure. The company recently inked a deal with CoreWeave (CRWV) worth $7 billion.

Applied Digital signed two 15-year leases with CoreWeave, an Nvidia (NVDA)-backed, AI-focused cloud provider. The move is expected to generate more than $7 billion in revenue for the company. As per the deal, Applied Digital will provide 250 megawatts (MW) of critical IT load at its Ellendale, North Dakota campus to support CoreWeave’s AI and high-performance computing infrastructure. CoreWeave also has the option to increase an additional 150 MW at the site, signaling further opportunities for Applied Digital.

Following the deal, Applied Digital shares exploded higher, gaining nearly 50% on June 2. 

Analyst Ratings on APLD

Applied Digital is on the good side of Wall Street with a “Strong Buy” rating and a mean price target of $13.25, roughly in line with its current price. 10 Analysts have covered the stock, receiving nine “Strong Buy” ratings and one “Moderate Buy” rating.