If you’ve been paying attention to the stock market, you’ve probably noticed that Applied Digital (NASDAQ:APLD) is having the kind of year that makes other investors weep into their portfolios. Up 255% year-to-date? Yeah, that’s not a typo. And just when you thought the party might be slowing down, the company announced a financing deal that sent the stock soaring another 14% to over $27 per share.
Here’s the thing: this isn’t some meme stock fueled by Reddit threads and FOMO. This is a legitimate play on the AI infrastructure boom that’s reshaping how tech companies operate.
**The Deal That Keeps on Giving**
Applied Digital just inked a loan facility with Macquarie Group—basically a $100 million war chest to fund the development of new AI data center campuses. Think of it as getting a blank check to build the digital real estate that every major tech company desperately needs right now.
The company already has two data center campuses in North Dakota. One’s leased to CoreWeave, and the other is partially leased to a major hyperscaler (fancy term for a massive cloud company) that’s supposed to fire up operations in early 2026. They’re also planning to open two more campuses next year. It’s like watching someone build a hotel chain right before tourism explodes.
**The Numbers Are Ridiculous (In a Good Way)**
Here’s where it gets interesting. Applied Digital is sitting on $11 billion in contract value from a 15-year CoreWeave lease and another $5 billion from the hyperscaler deal. That’s not revenue yet—it’s committed future cash. The company’s CFO basically said they’re on track to hit $1 billion in annual net operating income within five years. That’s the kind of trajectory that makes Wall Street analysts lose their minds.
Last quarter, revenue jumped 84% year-over-year to $64 million. Sure, the company posted a $28 million loss, but that was 275% better than the same quarter last year. Profitability is coming—it’s just a matter of when, not if.
**Why Everyone’s Bullish**
All 12 analysts covering the stock rate it a buy. The median price target? $40.50 per share. That’s 49% upside from current levels. And with a forward P/E of 19 based on earnings projections, it’s not even that expensive for a company growing this fast.
The broader story here is that AI infrastructure is becoming the new oil. Every major tech company needs data center capacity, and there’s a shortage. Applied Digital is essentially printing money by building the infrastructure that everyone needs.
**The Catch**
Look, the stock is already up 255% this year. That’s a lot of good news already priced in. If the company misses on execution—if those hyperscaler deals fall through or construction delays happen—this thing could get ugly fast. But if they deliver on their promises? This could be one of those rare stocks that actually justifies its valuation.
The AI boom isn’t slowing down anytime soon. Applied Digital is positioned right in the middle of it. That’s why investors keep throwing money at it.