APLD Stock the Only Chip Gainer Today, Targets 2022 Highs on Strategic Expansion
Applied Digital (NASDAQ: APLD) is gaining fresh momentum as its latest earnings beat expectations and ambitious AI infrastructure plans capt
Quick overview
- Applied Digital's recent earnings report exceeded expectations, contributing to a surge in stock momentum.
- The company announced plans for a $3 billion AI factory, Polaris Forge 2, set to launch in September 2025 in North Dakota.
- A partnership with CoreWeave Inc. has expanded their contract, potentially generating an additional $4 billion in revenue.
- Analysts project significant annual revenue growth driven by strong demand for AI infrastructure, positioning Applied Digital for future profitability.
Applied Digital (NASDAQ: APLD) is gaining fresh momentum as its latest earnings beat expectations and ambitious AI infrastructure plans capture investor attention.
Earnings Boost Sparks Momentum
Applied Digital started the week on a strong footing, carrying momentum from last week’s solid earnings report. The stock finally surpassed the $15 mark, a level that had previously acted as a significant barrier. Although it faced early-session weakness on Wednesday as the stock slipped below $15, buyers quickly stepped in, pushing APLD shares up 2.5% for the day and sustaining the upward trend. Analysts are now eyeing a potential retest of the 2022 highs near $27, driven by building bullish momentum.
APLD Chart Daily – Returning Quickly Above $15
The renewed investor interest coincides with the company’s announcement of a bold new AI project that has captured market imagination. Set to launch in September 2025, Polaris Forge 2, a $3 billion AI factory, will be located near Harwood, North Dakota. The facility is expected to begin operations in 2026 and reach full capacity by early 2027, generating 280 megawatts of power initially, with plans to expand further. Spanning over 900 acres, the project will employ more than 200 full-time staff, with electricity supplied by Cass County Electric Cooperative.
Strategic Expansion
The Harwood development builds on North Dakota’s emerging reputation as a hub for AI infrastructure and follows the success of Polaris Forge 1 in Ellendale. Applied Digital has revealed that it is in advanced discussions with a U.S.-based investment-grade hyperscaler to anchor the new facility, lending credibility and long-term revenue potential to the project.
The company’s Q4 earnings already had investors excited. Applied Digital posted a non-GAAP net loss of just $0.03 per share, significantly outperforming Wall Street’s expectation of a $0.14 loss—an 81% upside surprise. The results underscored improved cost management and operational efficiency, reinforcing confidence ahead of the upcoming Q2 earnings season.
Partnerships and Revenue Opportunities
Investor enthusiasm intensified as CoreWeave Inc. (NASDAQ: CRWV) exercised an option to increase its contracted IT load capacity with Applied Digital by 150 MW, bringing the total to 400 MW. This expanded agreement is expected to generate an additional $4 billion in revenue, raising the overall contract value with CoreWeave to an impressive $11 billion.
Long-term leasing agreements like these, coupled with strategic site selections and efficient construction, indicate a robust pipeline of future revenue. Analysts are projecting 46.9% annual revenue growth, driven by strong demand for AI infrastructure, and see earnings trending toward significant profitability over the next three years.
Conclusion: With a combination of strong earnings performance, strategic partnerships, and ambitious AI infrastructure projects, Applied Digital is positioning itself as a major player in the AI sector. The momentum in its stock reflects growing investor confidence and the company’s potential to scale rapidly in an increasingly competitive market.
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