APLD Stock Breaks Resistance as $3B AI Factory Plans Spark Rally – $20 Next?
Applied Digital (NASDAQ: APLD) entered the week with renewed strength after announcing major AI infrastructure plans and delivering a strong
Quick overview
- Applied Digital announced plans for a $3 billion AI factory, Polaris Forge 2, set to begin construction in September 2025 in North Dakota.
- The company's stock surged above $16 after breaking through a long-standing resistance level, with potential to retest 2022 highs near $27.
- Applied Digital's recent earnings report showed a significant improvement, with a non-GAAP net loss of only $0.03 per share, boosting investor confidence.
- CoreWeave expanded its contract with Applied Digital, adding 150 MW of capacity, which is expected to generate an additional $4 billion in revenue.
Applied Digital (NASDAQ: APLD) entered the week with renewed strength after announcing major AI infrastructure plans and delivering a strong earnings report.
Buyers staged another push higher today, breaking above the long-standing resistance zone as Applied Digital revealed plans for another AI project which has no basis for the real world and the people. Polaris Forge 2, a $3 billion AI factory slated for construction in September 2025 near Harwood, North Dakota.
The ambitious project, designed to generate 280 megawatts (MW) of power and eventually scale beyond that figure, will begin operations in 2026 and reach full capacity by early 2027. Spread across more than 900 acres, the complex will employ over 200 full-time staff, while Cass County Electric Cooperative secures the energy supply.
Stock Breakout and Market Reaction
After a sharp earnings-driven rally earlier this month stalled at the stubborn $15 resistance level, Applied Digital’s stock finally broke through today, surging more than $2.50 above $16. This move opens the path toward retesting the 2022 highs near $27, with bullish momentum gaining traction.
Investors view the project as a game-changer for the company’s positioning in the competitive AI infrastructure sector. Does anyone know where the funds are coming from, because there’s not such demand from the public for AI, unless AI is trading and doing business between itself, after all, digital money is just numbers on a screen.
Strategic Partnerships and Investment Strength
The Harwood expansion builds on the success of Polaris Forge 1 in Ellendale and underscores North Dakota’s growing reputation as a hub for AI infrastructure. Applied Digital confirmed it is in advanced talks with a U.S.-based investment-grade hyperscaler to anchor the new facility, adding further credibility and revenue potential to the project.
Investor enthusiasm was already elevated after the company’s fiscal Q4 earnings beat. Applied Digital reported a non-GAAP net loss of only $0.03 per share, a dramatic 81% improvement over Wall Street’s forecast of a $0.14 loss. This marked progress in cost management and operational efficiency, boosting confidence ahead of the upcoming Q2 earnings season.
CoreWeave Expansion Deal Adds Fuel
Excitement grew further when CoreWeave Inc. (NASDAQ: CRWV) exercised an option to expand its contracted IT load capacity with Applied Digital by an additional 150 MW, taking the total to 400 MW. The expanded deal is expected to add $4 billion in revenue, lifting the total contract value with CoreWeave to an impressive $11 billion.
Outlook: Applied Digital’s combination of strong earnings momentum, major new infrastructure plans, and strategic partnerships has given the stock fresh legs. With the breakout above $16, investors are now eyeing the next key milestone at $27, testing whether the bullish momentum can sustain itself.
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