
APLD Stock Forecast & Price Target
APLD Analyst Ratings
Bulls say
Applied Digital Corp is experiencing significant revenue growth, highlighted by a 39% increase in High-Performance Computing (HPC) revenues, which rose to $763 million compared to $547 million in prior estimates. The company is positioned for further expansion due to easing labor conditions and reduced supply constraints, allowing it to surpass supply-side estimates while focusing on its HPC build-out initiatives. Additionally, the completion of the first PF1 data hall is generating revenue ahead of expectations, contributing to a favorable outlook for near-term revenue and net operating income in fiscal years 2026 and 2027.
Bears say
Applied Digital Corp's gross margins significantly underperformed expectations, reported at 13% compared to the anticipated 19%, largely due to elevated fit-out costs. The company faces multiple risks, including macroeconomic challenges, supply chain issues affecting critical components, and the impending bitcoin halving in Q2 2024, which could squeeze margins for its cryptocurrency mining customers. Additionally, high revenue concentration from a limited customer base and the unproven profitability of its HPC data center operations contribute to a negative outlook, with potential future power price increases further jeopardizing contract viability.
This aggregate rating is based on analysts' research of Applied Digital Corporation and is not a guaranteed prediction by Public.com or investment advice.
APLD Analyst Forecast & Price Prediction
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