APLD
Applied Digital
Summary
What they do:
Applied Digital designs, builds, and operates AI-optimized data center campuses — branded as "AI Factories" — leasing powered infrastructure to CoreWeave and hyperscalers under long-term contracts at sites in North Dakota and the southern US.
Why they matter:
APLD holds 400MW of contracted capacity at Ellendale with $16B in total backlog, making it one of the largest independent powered campus developers at a time when pre-energized AI sites are the binding constraint on GPU deployment.
Recent performance:
Q3 FY2026 (Feb 2026) revenue $126.6M (+139% YoY), adjusted EBITDA $44.1M; stock ~$32, market cap ~$9.2B, up from $3.81 low in the past year.
Our Verdict
Pure-play AI data center developer with $16B in contracted backlog and investment-grade tenants, trading at a premium that prices in flawless execution on a 1+ GW development pipeline — upside is real but so is construction and financing risk.
Structural trends
Structural
61
/ 100
Moat
4/10
Power Access + Long-Term Leases
AI Exp.AI Exposure
Pure Play~95% AI
Play Type
EmergingAI Growth
~139% YoY
Rel. Value
60
ATTRACTIVEPriceLIVE
$31.47
+14.02%
Live via Yahoo Finance · refreshes every 5 min
Market Cap
$9.0B
P/E Ratio
N/A
P/S Ratio
28.2x
52W High
$42.27
52W Low
$3.31
52W Chg
850.8%
Beta
7.27
Applied Digital started life building data centers for cryptocurrency mining, leveraging cheap power in places like Ellendale, North Dakota. The company pivoted aggressively toward AI infrastructure beginning in 2024, recognizing that the same assets that made it a competitive miner — secured power interconnections, permitted sites, and operational experience with high-density compute — were exactly what hyperscalers needed to deploy GPUs. That pivot has been transformational: APLD now operates AI-optimized data centers it brands as "AI Factories," leasing powered campuses to CoreWeave and at least one undisclosed investment-grade hyperscaler under long-term contracts.
The physical footprint is expanding rapidly. Polaris Forge 1 at Ellendale, North Dakota houses 400MW of critical IT load across three buildings leased to CoreWeave under approximately 15-year agreements worth a combined ~$11B in contracted revenue. The first 100MW building achieved full energization in late 2025. Polaris Forge 2, also near Ellendale, is a 200MW campus under construction with a separate $5B, 15-year hyperscaler lease, funded by a $2.15B senior secured note offering. Delta Forge 1, a 430MW utility power / 300MW critical IT campus in a southern US location, broke ground in early 2026 with initial operations targeted for mid-2027.
Applied Digital also operates a GPU cloud services business — a direct-to-customer GPU-as-a-service platform that generated $75.2M in revenue in the twelve months ending August 2025. The company announced plans to spin this business out through a merger with EKSO Bionics, creating a new publicly traded entity called ChronoScale. Upon closing (expected H1 2026), Applied Digital would retain approximately 97% ownership, giving it a separate public vehicle for GPU cloud while the parent focuses purely on infrastructure development and leasing.
Management describes their total power pipeline as roughly six times their currently contracted capacity, implying 2+ GW of long-term site potential. They are actively marketing four development sites. The contracted backlog stands at approximately $16B — a remarkable figure for a company that was generating under $100M in annual revenue two years ago.
Supply Chain Dependencies
The Catch
APLD's entire thesis rests on delivering physical infrastructure on time and on budget — a historically difficult task even for experienced developers. The company has never operated at the scale it is now building toward (1+ GW), and it is simultaneously managing three major campus projects across different geographies while carrying $2.15B in new high-yield debt. CoreWeave concentration amplifies this risk: if CRWV stumbles financially, APLD's $11B in Ellendale lease revenue is at risk regardless of APLD's own execution. The company has also never been GAAP profitable, and the path from adjusted EBITDA to free cash flow is obscured by the massive construction capex cycle. Investors are buying a construction company at infrastructure-platform multiples.
If They Win
If Applied Digital delivers its full development pipeline — Polaris Forge 1 and 2 at Ellendale, Delta Forge 1 in the southern US, and additional campuses from the 2+ GW power pipeline — it becomes one of the largest independent AI infrastructure platforms in the world. The $16B+ contracted backlog converts into $1B+ annual recurring revenue with 50%+ EBITDA margins, supporting a transition to REIT status that would attract a new class of income-focused investors. In this scenario, APLD's early mover advantage on power access — securing utility interconnections before the grid queue crisis — creates a platform that grows with every new hyperscaler campus announcement, and the stock trades at REIT multiples on a $1.5B+ revenue base.
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Not financial advice. All scores generated via AI algorithms using public data.