Shares of Applied Digital (APLD) surged 7.9% on Wednesday, closing at $39.52, after Needham analyst John Todaro raised the price target to $66 from $51 while reiterating a Buy rating. The upgrade was driven by the company’s newly secured 15-year lease agreement for 300 MW of critical capacity at the Polaris Forge 3 data center campus in North Dakota.
The multi-billion-dollar hyper-scaler commitment guarantees $7.5 billion in contracted revenue, with expansion options that could inflate the total to $18.2 billion. Todaro highlighted that this deal materially de-risks the capital expenditure needed for the North Dakota expansion and demonstrates rapid execution with a sub-30-day lease closing timeline.
Citizens JMP also maintained a Buy rating with a $60 target. Applied Digital’s total portfolio has reached 1.7 GW, with a 1.3 GW pipeline in progress and active engagement with major hyperscalers and Nvidia. The company’s forward-looking design philosophy—including ultra-dense power delivery networks and direct liquid-cooling platforms—positions it to handle high-density AI and HPC workloads.
The latest quarterly revenue hit $108.55 million, up 139.3% year over year and beating estimates of $78.47 million. The overall contracted multi-year pipeline has swollen to about $31 billion across its fleet, providing utility-like insulation alongside growth upside.
