Applied Digital Corporation (APLD) - Stock Analysis
Last updated: Jan 19, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Rapid 250% YoY revenue growth driven by multi-billion-dollar hyperscaler lease contracts and expanding AI data center infrastructure; strong technical rebound with sustained momentum, balanced against unprofitability and elevated leverage, making it a compelling growth play in AI infrastructure.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Debt-funded cash ⢠Negative operating cash ⢠Compressed margins APLD's liquidity has materially improved after a debt-funded cash build that flipped working capital positive and boosted the current ratio, but high leverage, persistent negative operating/FCF and compressed margins leave solvency and valuation risks.
Price Behavior
Key Price Behavior Insights: ⢠Broken resistance ⢠$30 support ⢠Rapid spike Support Level: $30.00 Resistance Level: $35.00â$37.00 APLD shows bullish momentum after breaking above $35â$37 following repeated bounces near $30, but the swift jump from $31.94 to $37.68 suggests potential short-term overextension.
Sentiment & News
Key News Insights: ⢠Q2 revenue surge ⢠Cloud spinoff ⢠$16B leases Applied Digital's shift to AI data-center infrastructureâhighlighted by a blowout Q2, a cloud spinoff, $16B in multi-year leases and infrastructure investmentsâfuels strong growth but ongoing losses and cash burn mean further financing and execution risk remain.
AI Summary
APLD has pivoted into a capitalâintensive, hyperscale AI infrastructure landlord with multiâyear, tenantâbacked upside but remains materially leveraged and dependent on continued external financing, so realized gains hinge on rapid lease NOI conversion and successful financing execution. Monitor quarterly fitâout-toâlease conversion, cash runway/interest coverage, and closure of Macquarie/preferred financings before treating it as a selective, speculative buy.
Description
Applied Digital Corporation designs, builds and operates digital infrastructure and cloud services across North America, organized into data center hosting, cloud services, and high-performance computing (HPC) hosting segments. The company provides infrastructure for cryptocurrency mining and GPU-based compute platforms that support AI, machine learning and other HPC workloads, and also handles the design, construction and management of data centers to support those applications. Headquartered in Dallas, Texas, it changed its name from Applied Blockchain, Inc. in November 2022.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Jan 13 | Jan 20 | APLD | Applied Digital Corporation | Rapid 250% YoY revenue growth driven by multi-billion-dollar hyperscaler lease contracts and expanding AI data center infrastructure; strong technical rebound with sustained momentum, balanced against unprofitability and elevated leverage, making it a compelling growth play in AI infrastructure. | Active | +1.9% |