Up 255% YTD, this data center stock soars on financing deal
Applied Digital shares rose 14% higher on Friday.
Applied digital (NASDAQ:APLD) was one of the hottest stocks of 2025, up about 255% year-to-date.
Applied Digital shares rose again on Friday. surged about 14% to over $27 per share. We’ve closed a deal that will help us build more AI data centers.
Specifically, Applied Digital Signed a loan agreement with Macquarie Group Financing pre-lease development costs for new data center projects. The capital will be used for early stage sourcing, planning, development and support. Construction of a new data center campusAmong other projects.
beginning Withdrawal of $100 million from this lender It is intended to support “investment grade hyperscalers” for which Applied Digital is currently in advanced negotiations.
“This development facility enhances our ability to move quickly on high-quality sites while maintaining capital flexibility.” Wes Cummins, Chairman and CEO of Applied Digital, said:. “As demand for AI-optimized data center infrastructure continues to accelerate, this financing is intended to support our strategy to develop purpose-built campuses for our hyperscale customers.”
Analysts are optimistic
Currently, Applied Digital is Two data center campuses in North Dakota (one leased to CoreWeave) (NASDAQ:CRWV) and the other is partially leased. Major hyperscalers scheduled to begin operations in early 2026. The company also has cryptocurrency mining operations at other sites and plans to open two new data center campuses next year.
Applied Digital’s stock price is soaring on expectations of future sales growth. In the last quarter Applied Digital revenue increased 84% year over year to $64 million.But looking forward $11 billion 15-year CoreWeave Lease Agreement Value & More $5 billion in hyperscalers Go to another campus.
“CoreWeave leases support approximately $500 million in annual net operating income, and Polaris Forge Two is poised to significantly increase that number. We are on track to achieve our $1 billion NOI goal. (Net operating income) This is the operating rate within 5 years. And this is just the beginning.” Saidal Mohmand, Chief Financial Officer (CFO) said: In the first quarter earnings announcement in October.
Investors therefore expect continued growth, especially as AI expands and the need for data center performance increases.
that The stock is considered a strong buy among analysts.All 12 companies covering it have given it a Buy rating with a median target price of $40.50 per share. it would suggest 49% upside potential compared to next year.
The company lost $28 million last quarter, but that’s a 275% improvement over the same quarter a year ago. Profitability should come soon The forward P/E based on earnings estimates is 19. Over the next 12 months.
Although it has already risen 255% YTDApplied Digital stock appears to have some room to run.
