Applied Digital stock rose another 14% on Friday.
Applied Digital (NASDAQ:APLD) has been one of the hottest stocks of 2025, up about 255% year-to-date (YTD).
On Friday, Applied Digital stock rose again, soaring some 14% to more than $27 per share on a deal that will help it build out more AI data centers.
Specifically, Applied Digital entered into a loan facility with the Macquarie Group to fund the pre-lease development costs for new data center projects. The capital would be used to support early-stage sourcing, planning, development, and construction of new data center campuses, among other projects.
The initial $100 million draw from this loan facility is intended to support an “investment-grade hyperscaler” that Applied Digital is currently in advanced negotiations with.
“This development facility strengthens 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 of developing purpose-built campuses for hyperscale customers.”
Analysts are bullish
Applied Digital currently has two data center campuses in North Dakota, with one leased to CoreWeave (NASDAQ:CRWV) and the other partially leased to a major hyperscaler that is set to begin operations in early 2026. The firm also has a crypto mining operation at another site, and is planning to open two new data center campuses next year.
Applied Digital stock has been soaring on expectations for future revenue growth. In the last quarter, Applied Digital saw revenue rise 84% year-over-year to $64 million, but looking ahead, it highlights $11 billion in contract value from the 15-year CoreWeave lease and another $5 billion from the hyperscaler moving into the other campus.
“With the CoreWeave lease supporting roughly half a billion in annual net operating income and Polaris Forge Two poised to significantly increase that figure, we are laying the foundation to reach our stated goal of $1 billion of NOI (net operating income) run rate within five years. And this is just the beginning,” Chief Financial Officer Saidal Mohmand said on the Q1 earnings call in October.
So, investors are expecting to see continued growth, especially as AI expands and the need for data center power increases.
The stock is considered a strong buy among analysts, with all 12 that cover it rating it a buy with a median price target of $40.50 per share. That would suggest 49% upside over the next year.
The company had a $28 million loss last quarter, but that was 275% better than the same quarter a year ago. Profitability should come soon as it has a forward P/E of 19 based on earnings projections over the next 12 months.
Even though its already up 255% YTD, Applied Digital stock appears to have some room to run.
