Remember that friend who bought Bitcoin at $100 and won’t shut up about it? Well, Applied Digital (NASDAQ: APLD) investors are basically that friend right now – except they have every right to be insufferable because this stock is up a mind-melting 255% this year.
And just when you thought it couldn’t get any hotter, APLD decided to throw another 14% gain at us on Friday, rocketing past $27 per share. Why? Because they just landed a sweet financing deal that’s basically like getting a blank check to build more AI data centers.
Show Me the Money
Here’s the deal: Applied Digital just scored a loan facility with Macquarie Group (fancy Australian bank, in case you’re wondering). The initial draw is $100 million – not exactly pocket change – and it’s earmarked for building shiny new data center campuses.
Think of it like this: AI needs somewhere to live, and Applied Digital is basically the luxury real estate developer for artificial intelligence. They’re not just throwing up any old buildings either – these are “purpose-built campuses for hyperscale customers.” Translation: really, really big tech companies that need massive amounts of computing power.
CEO Wes Cummins put it perfectly: “This development facility strengthens our ability to move quickly on high-quality sites while maintaining capital flexibility.” Corporate speak for “we can now build faster and bigger without going broke.”
The Numbers Game
Let’s talk about why everyone’s so excited. Applied Digital already has two data centers in North Dakota (because apparently that’s where the AI magic happens). One is leased to CoreWeave, and another major hyperscaler is moving in early 2026.
But here’s where it gets spicy: they’re sitting on $11 billion in contract value from CoreWeave alone, plus another $5 billion from their mystery hyperscaler tenant. That’s not a typo – we’re talking about $16 billion in future revenue.
Last quarter, revenue jumped 84% to $64 million. Sure, they’re still losing money ($28 million loss), but that’s 275% better than last year’s bloodbath. Plus, with a forward P/E of 19, profitability is actually on the horizon.
Wall Street’s Love Affair
Analysts are basically throwing roses at this stock. All 12 analysts covering APLD rate it a buy, with a median price target of $40.50. That’s another 49% upside from current levels.
The company’s goal? Hit $1 billion in net operating income within five years. Ambitious? Maybe. Impossible? Apparently not, considering they’re already laying the groundwork.
The Bottom Line
Look, a 255% gain in one year is the kind of performance that makes people quit their day jobs and become day traders (please don’t). But Applied Digital isn’t just riding the AI hype wave – they’re building the infrastructure that makes the wave possible.
With $16 billion in contracted revenue and Wall Street’s blessing, this data center darling might just have more room to run. Just don’t blame us when your FOMO kicks in.