TLDRs;
- Applied Digital stock jumps as B. Riley raises price target.
- Investors watch new AI data-center leases and construction updates closely.
- Fiscal revenue surges 250%, reflecting strong AI infrastructure growth momentum.
- Execution risks remain, but potential hyperscaler deals excite market watchers.
Applied Digital (NASDAQ: APLD) saw its stock climb dramatically on Friday, closing at $37.68, marking an 18% increase from previous levels.
The rally, fueled by news surrounding AI-focused data center leases, financial structuring, and ongoing construction, underscores the growing market interest in companies enabling high-performance computing (HPC) infrastructure. Shares fluctuated between $31.83 and $38.30 on heavy trading volume of approximately 86 million shares, signaling strong investor enthusiasm ahead of the weekend.
The surge reflects a broader trend in which firms capable of supplying essential power to AI data centers, measured in megawatts, are becoming increasingly critical to investors. Applied Digital, which specializes in leasing HPC data-center space and power, has emerged as a key player in this infrastructure-driven AI boom.
Applied Digital Corporation, APLD
B. Riley Raises Price Target
Adding fuel to the rally, B. Riley increased its price target for Applied Digital from $47 to $53 while maintaining a “buy” rating. Analysts highlighted the company’s strong positioning for potential new contracts with hyperscale clients, particularly as the company advances initial energization and development at its North Dakota sites.
The upgrade reinforces market optimism that Applied Digital could secure long-term lease agreements that significantly increase its revenue visibility.
Strong Financials Drive Confidence
Applied Digital’s recent financial disclosures contributed to the stock’s momentum. Fiscal second-quarter revenue reached $126.6 million, a 250% increase compared to the same period last year. Adjusted EBITDA climbed to $20.2 million, even as the firm reported a net loss of $31.2 million to common shareholders. These figures highlight the company’s rapid growth, driven largely by its strategic positioning in the AI infrastructure space.
Currently, Applied Digital has secured 600 megawatts of leased capacity across its Polaris Forge sites, including a notable 200-megawatt, 15-year lease with a U.S. investment-grade hyperscaler. Management confirmed ongoing discussions with a second hyperscaler, further signaling potential upside for investors. CEO Wes Cummins described the Dakotas as a “compelling region for hyperscalers,” while CFO Saidal Mohmand noted that a strong liquidity position provides flexibility to complete ongoing construction projects.
Risks and Market Watch
Despite the enthusiasm, Applied Digital’s filings underline the challenges it faces. Risks include dependency on key clients, access to financing, and construction or permit delays, all of which can impact a company heavily reliant on future leases rather than current revenue. Market watchers will be monitoring any announcements that turn ongoing discussions into finalized contracts, along with clearer timelines for when new capacity will be operational.
Investors have circled the company’s upcoming earnings report on April 13, 2026, as a potential catalyst for further stock movement. Other crypto-to-AI infrastructure stocks, including Hut 8 and Core Scientific, also gained Friday, reflecting a broader investor appetite for companies enabling the “power for AI” theme.
Applied Digital’s current momentum, supported by strong financials, strategic hyperscaler positioning, and B. Riley’s optimistic target, underscores why traders and analysts alike are keeping a close eye on the stock in the weeks ahead.
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