Overview
- Applied Digital has started recognizing lease revenue and management says lease revenues should ramp over the next quarter.
- The company broke ground on a 430 MW data center campus in the southern U.S. and is in discussions to contract that capacity to an investment‑grade hyperscaler.
- Long‑term leases total roughly $16 billion tied to 600 MW across two North Dakota campuses.
- Shares have risen about 400% over the past year, and all 14 covering analysts rate the stock a buy with a $43.50 median 12‑month target implying about 18.5% upside.
- Execution risks include a $125 million loss over the last 12 months, nearly $2.6 billion of debt largely at 9.25% interest, and heavy reliance on CoreWeave for future lease income.