Applied Digital Corporation (APLD) Stock Analysis
Range Bound setup
Technology · Information Technology Services
Sell if holding. Engine safety override at $46.30: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10 and A.R:R 2.2:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 29%; Below-average business quality.
Applied Digital Corporation designs and operates data center infrastructure in North Dakota for crypto mining (Data Center Hosting) and high-performance computing/AI workloads (HPC Hosting). During fiscal year 2025, the Data Center Hosting segment — where one customer accounted... Read more
Sell if holding. Engine safety override at $46.30: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10 and A.R:R 2.2:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 29%; Below-average business quality. Chart setup: RSI 45 mid-range, Bollinger mid-band. Score 5.6/10, moderate confidence.
Passes 8/9 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 43d clear, semi cycle peak clear, materials cycle peak clear). Suitability: aggressive.
About Applied Digital Corporation
About Applied Digital Corporation
Applied Digital Corporation operated two data center businesses in fiscal year 2025: a Data Center Hosting segment generating 100% of revenue from continuing operations, where one crypto mining customer accounted for 93% of that revenue; and a pre-revenue HPC Hosting segment under active construction. The company reported net losses of $231.1 million for the fiscal year ended May 31, 2025, operated roughly 286 MW of total hosting capacity across two sites in Jamestown and Ellendale, North Dakota, and employed approximately 205 full-time staff.
The Data Center Hosting Business leases energized infrastructure space to crypto mining customers priced by power consumption; as of the filing date, one customer remained under a contract with 2.5 years remaining. The HPC Hosting Business targets high-density GPU workloads, with three data centers under construction at the Polaris Forge 1 campus in Ellendale, North Dakota — a 100 MW and a 150 MW building under active construction — and a single tenant holding two fifteen-year leases covering 250 MW of combined capacity, signed in May 2025. Applied Digital competes with Digital Realty, Equinix, NTT, Bitdeer Technologies Group, and Riot Platforms. The company relies on a limited number of vendors for certain products, with some contracts providing a single source of materials, and power supply depends entirely on third-party utilities. Tariff impacts on specialized electrical infrastructure components required for HPC facility buildout remain difficult to predict.
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Customer concentration poses the most acute revenue risk: the Data Center Hosting segment's sole remaining crypto mining customer holds a contract with 2.5 years remaining and may unilaterally reduce or discontinue at any time subject to notice provisions. If that customer exits and Applied Digital cannot replace the revenue, the company's ongoing losses could accelerate against a capital base requiring substantial additional financing to complete Polaris Forge 1. The HPC Hosting segment had generated no revenue as of the filing date, and the profitability of the two fifteen-year leases cannot yet be determined.
See also: Technology · Information Technology Services
From Applied Digital Corporation's most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-06-17Recent Developments — Applied Digital Corporation
Latest news
- NEWS Applied Digital Prices $1.59B 7.00% Senior Secured Notes Due 2031 To Fund AI Data Center Construction And Refinance Brid — benzinga Jun 9, 2026 positive
- NEWS 10 Information Technology Stocks With Whale Alerts In Today's Session — benzinga Jun 9, 2026 neutral
- NEWS Craig-Hallum Maintains Buy on Applied Digital, Raises Price Target to $79 — benzinga Jun 9, 2026 positive
- NEWS Lake Street Maintains Buy on Applied Digital, Raises Price Target to $90 — benzinga Jun 9, 2026 positive
- NEWS Apple To Rally More Than 19%? Here Are 10 Top Analyst Forecasts For Tuesday — benzinga Jun 9, 2026 neutral
Generated 2026-06-17T08:56:47Z.
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Hyper-growth tech sacrificing current profitability for scale. Floor tripped because model treats negative margins uniformly; the growth dimension tells the other half of the story.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
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Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $46.30: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10 and A.R:R 2.2:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 29%; Below-average business quality. Chart setup: RSI 45 mid-range, Bollinger mid-band. Prior stop was $43.03. Score 5.6/10, moderate confidence.
Take-profit target: $61.77 (+33.5% upside). Prior stop was $43.03. Stop-loss: $43.03.
Quality below floor (2.5 < 4.0).
Applied Digital Corporation trades at a P/E of N/A (forward -48.2). TrendMatrix value score: 5.4/10. Verdict: Sell.
18 analysts cover APLD with a consensus score of 4.2/5. Average price target: $71.
What does Applied Digital Corporation do?Applied Digital Corporation designs and operates data center infrastructure in North Dakota for crypto mining (Data...
Applied Digital Corporation designs and operates data center infrastructure in North Dakota for crypto mining (Data Center Hosting) and high-performance computing/AI workloads (HPC Hosting). During fiscal year 2025, the Data Center Hosting segment — where one customer accounted for 93% of revenue — was the sole revenue source from continuing operations.