Remember when your crypto-mining buddy wouldn’t shut up about Applied Digital (APLD)? Well, turns out they might’ve been onto something – just not for the reasons they thought.
APLD used to be one of those companies digging for digital gold in the crypto mines. But like any smart player watching the AI boom unfold, they pivoted faster than a startup changing its pitch deck. And boy, did it pay off.
The company just dropped Q1 2026 numbers that made analysts look like they were guessing stock prices with a Magic 8-Ball. Revenue jumped 84% year-over-year to $64.2 million – analysts were expecting a measly $50 million. Even better? They only lost 3 cents per share when the smart money was betting on a 13-cent loss.
But here’s where it gets spicy: APLD isn’t just beating expectations, they’re basically printing money contracts. Their CoreWeave deal (you know, the AI infrastructure darling) just got expanded by another 150 MW. For context, that’s like adding another small city’s worth of power to their data center empire.
The real kicker? Their Polaris Forge 1 data center is now at full capacity, and they’re sitting on $11 billion in prospective lease revenue. That’s not a typo – eleven billion with a ‘B.’ They’re planning to scale this thing up to 1 GW between 2028 and 2030, which is basically enough power to run a small country’s worth of AI computations.
Now, about that $100 price target that sounds like someone’s fever dream: APLD has already rocketed 587% in six months and hit $39 earlier this year before settling around $34. The math isn’t as crazy as it sounds when you consider they’re targeting a $1 billion net operating income run rate within five years – and at this pace, they might hit it sooner.
Think about it: we’re in the middle of an AI infrastructure gold rush, and APLD just became the guy selling premium shovels to everyone digging. While other companies are still figuring out their AI strategy, APLD is already cashing checks from the biggest players in the game.
The stock could easily double in the next 12 months if management keeps executing like this. Sure, $100 sounds ambitious, but so did a 587% gain six months ago. In a market where AI infrastructure is the hottest commodity since sliced bread, APLD is positioned like they own the bakery.
Of course, this is still a volatile growth stock in a sector that changes faster than TikTok trends. But when a company beats earnings this decisively while expanding major contracts, it’s worth paying attention. Your portfolio might thank you later – just don’t bet the farm on any single stock, no matter how promising the spreadsheet looks.