6/5/2025 04:40pm
The deep research logic is organized as follows:
Okay, let's tackle this question about Applied Digital's (APLD) forecast. The user is asking how the forecast looks for APLD. First, I need to gather all the relevant data from the provided references and background.
Starting with the analyst data, there's a consensus rating of "Strong Buy" from 11 analysts . The average price target as of June 5, 2025, is $11.36 . However, recent news mentions that several analysts have raised their price targets after the CoreWeave deal. For example, B. Riley raised their target to $15 , and JMP Securities has a target of $18 . There's also a mention of Roth Capital boosting their target to $17.50 .
The company signed a $7 billion lease agreement with CoreWeave for data center capacity, which is a major catalyst . This deal is expected to generate significant revenue over 15 years, with potential expansion options. The stock has surged over 78% in the past week , hitting a 52-week high .
Looking at the analyst price target revisions, there are no results found for after June 5, 2025 , but the recent news suggests that more analysts might be updating their targets. The current price is $13.35 , which is above the average target of $11.36 but below some of the higher targets like $15 and $18.
The user's profile mentions interest in Berkshire Hathaway's portfolio, which typically includes stable, blue-chip stocks. APLD is a tech infrastructure play, which might be a bit different, but the recent surge and analyst optimism could be appealing. The user might be looking for high-growth opportunities, especially in AI infrastructure, given the mention of Nvidia in their previous questions.
I need to structure the answer with a conclusion first, then detailed analysis. The conclusion should highlight the bullish outlook due to the CoreWeave deal and analyst upgrades. The analysis should break down the key factors: the deal specifics, analyst targets, recent stock performance, and risks. Also, include a table of analyst targets and a price target comparison. Make sure to cite all references properly and include the required visualizations for the queries mentioned.
Wait, the user's profile mentions a focus on blue-chip stocks, but APLD is a smaller-cap tech company. However, the recent partnership with CoreWeave and the analyst upgrades might align with their interest in high-growth sectors, especially AI. The user also asked about tech stocks like Nvidia, so this could be relevant.
Need to ensure the answer is comprehensive, starts with a conclusion, uses tables, and includes the necessary citations and visualizations. Also, check if any of the references mention revenue or earnings forecasts, but it seems there are no results for 2025 . So, focus on the qualitative aspects from the news articles.
Make sure to address the risks mentioned in some articles, like financial health and debt . The user might appreciate a balanced view, especially if they're considering adding APLD to their portfolio.
Finally, structure the answer with clear headings, use bold for key points, and include emojis to make it engaging. Also, ensure that the visualization for the APLD Analyst Average Price Target is included right after the relevant paragraph.
Conclusion 🚀
Applied Digital (APLD) presents a highly bullish outlook driven by its transformative $7 billion lease agreement with CoreWeave and a surge in analyst optimism. The stock has surged 78% in the past week, hitting a 52-week high, with analysts revising price targets upward and maintaining a "Strong Buy" consensus. However, investors should remain cautious of near-term risks, including high debt levels and operational execution challenges.
Analysis
1. Catalyst: CoreWeave Lease Agreement
Applied Digital signed 15-year lease agreements with CoreWeave to provide 250 MW of data center capacity in North Dakota, generating $7 billion in revenue. CoreWeave holds an option to expand to 400 MW, with potential scalability to 1 GW . This deal positions APLD as a key player in AI infrastructure, aligning with the rapid growth of generative AI and high-performance computing (HPC) demand .
| Metric | Details |
|---|---|
| Lease Duration | 15 years (expandable to 400 MW) |
| Revenue Potential | $7 billion (base) + $3 billion (optional expansion) |
| Timeline | First phase (100 MW) online Q4 2025; full 250 MW by mid-2026 |
2. Analyst Sentiment
Analysts have upgraded price targets post-CoreWeave deal:
- B. Riley: Raised to $15 (from $18)
- Roth Capital: Boosted to $17.50 (from $8.50)
- JMP Securities: Initiated coverage with $18 target
- Craig-Hallum: Increased to $12 1
| Analyst | Price Target | Rating |
|---|---|---|
| B. Riley | $15 | Buy |
| Roth Capital | $17.50 | Buy |
| JMP Securities | $18 | Outperform |
| Craig-Hallum | $12 | Buy |
Average Target: $11.36 (as of June 5, 2025) .
3. Market Performance
APLD has surged 78% in the past week (June 4–5), closing at $13.35 . The stock hit a 52-week high of $14.49 , with extremely bullish retail sentiment (95/100 on Stocktwits) .
| Metric | Value (June 5, 2025) |
|---|---|
| Last Price | $13.35 |
| 52-Week High | $14.49 |
| Weekly Price Change | +78% |
4. Risks & Challenges
- Financial Health: APLD has $820 million in debt and a poor Altman Z-Score (0.45), indicating bankruptcy risk .
- Operational Risk: Execution delays in data center construction could impact revenue .
- Competition: CoreWeave’s 5.5% stake in APLD raises questions about alignment of interests.
Key Takeaways
- Bullish Catalyst: CoreWeave deal solidifies APLD’s role in AI infrastructure.
- Analyst Optimism: Price targets range from $10 to $18, with an average of $11.36.
- Risks: High debt, execution risks, and competition.
For investors with a high-risk tolerance and interest in AI infrastructure, APLD offers significant upside potential. However, Berkshire Hathaway-style investors (blue-chip focused) may prefer more stable alternatives in the tech sector, such as Nvidia (NVDA) or Amazon (AMZN).
