Applied Digital’s Hyperscaler Deal Is Just the Beginning of a Much Bigger AI Opportunity

Applied Digital (APLD) stock is hot on Wall Street again. The company is now receiving significant attention after securing a 15-year take-or-pay lease with a U.S. hyperscaler for its new Polaris Forge 3 AI campus. The campus is designed to handle 300 megawatts (MW) of critical load backed by 430 MW of grid power. For the company, this translates to $7.5 billion in base contracted revenue and up to $18.2 billion if options related to future expansion and extra power capacity are included. This not only confirms the long-term power demand but also positions Applied Digital as the right company to deliver that capacity.

Wall Street has responded positively to the recent development, with analysts from Needham and Lake Street assigning price targets of $66 and $70, respectively. Needham analysts were particularly impressed by the speed of the deal, together with the fact that the company is already marketing more sites to the same customer. Applied Digital’s short-term execution has been flawless, and if the trend continues, future capacity additions should follow.