TLDR
- Applied Digital (APLD) rose 7.9% on Wednesday, closing at $39.52 with volume near its 26 million daily average.
- Needham raised its price target to $66, up from $51, reiterating a Buy rating based on hyperscale contracts and HPC pipeline growth.
- Citizens JMP also maintained a Buy with a $60 price target on the same day.
- Revenue for the latest quarter hit $108.55 million, up 139.3% year over year, beating estimates of $78.47 million.
- APLD’s total portfolio has grown to 1.7GW, with a 1.3GW pipeline and active engagement with major hyperscalers and Nvidia.
Applied Digital (APLD) climbed 7.9% on Wednesday, closing at $39.52 after touching an intraday high of $39.59. The previous close was $36.62.
Applied Digital Corporation, APLD
Volume came in at roughly 25.7 million, just under the stock’s 26.2 million daily average.
The move came as analyst price targets continued to climb. Needham analyst John Todaro — ranked in the top 100 on TipRanks with a 64.88% success rate and average return of 65.4% — raised his price target on APLD to $66, up from a prior target of $51, while keeping his Buy rating.
Todaro’s upgrade was driven largely by APLD’s newly secured 300MW Polaris Forge 3 lease. The deal mirrors the economics and 15-year duration of the company’s existing Delta Forge 1 contract, pointing to growing demand from a key hyperscale customer.
He also cited the company’s expanded portfolio, now at 1.7GW total capacity, with a 1.3GW pipeline in progress. Active engagement with major hyperscalers and Nvidia added to his confidence in the growth outlook.
Citizens JMP separately maintained its Buy rating on APLD with a $60 price target on the same day.
Strong Revenue Growth, but Losses Widen
APLD reported quarterly earnings on April 8th. Revenue came in at $108.55 million, well above analyst expectations of $78.47 million, and up 139.3% from the same quarter a year ago.
The earnings picture was less clean. The company posted a loss of $0.36 per share, versus analyst estimates of a $0.13 loss. For the full year, analysts expect a loss of $0.61 per share.
The stock currently carries a market cap of $11.29 billion, a PE ratio of -53.40, and a beta of 5.69 — reflecting both its growth-stage financials and high volatility.
The 50-day moving average sits at $31.38 and the 200-day at $30.64, meaning Wednesday’s close represented a premium above both trend lines.
Analyst Consensus and Institutional Moves
The broader analyst community leans positive on APLD. Of 15 analysts covering the stock, two rate it Strong Buy, eleven rate it Buy, one has a Hold, and one has a Sell. The consensus target price is $44.67.
Citigroup reaffirmed an Outperform rating in January, while Texas Capital upgraded APLD to Strong Buy in the same month. Wall Street Zen moved the stock to Sell in April.
On the institutional side, Vanguard boosted its position by 36.4% in Q4, adding over 6.4 million units. Situational Awareness LP increased its stake by 18.9% in Q1. Institutional investors now hold 65.67% of the stock.
Two directors sold a combined 22,500 units in late April and early April, with insiders collectively selling 35,000 units valued at $1.18 million over the last 90 days. Insiders own 9.5% of the company.
The Base Electron project was also flagged by Todaro as a potential contributor to future high-performance computing revenue, adding another layer to the company’s growth pipeline.
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