Applied Digital's IPO Performance: A 205% Return on Investment

Applied Digital (APLD) stock had its IPO in April 2022 and has since delivered strong post-IPO gains. The company's initial focus on blockchain and cryptocurrency mining operations allowed it to pivot into the AI data center space due to its strengths in processing hardware. Applied Digital's share price has increased by 205% since its IPO and 282% over the last year. The company recently scored big wins with CoreWeave exercising an option to expand data center licensing, boosting Applied Digital's growth outlook.

Applied Digital (APLD) has experienced significant post-IPO gains since its April 2022 initial public offering (IPO). The company's initial focus on blockchain and cryptocurrency mining operations allowed it to pivot into the AI data center space, leveraging its strengths in processing hardware. APLD's share price has increased by 205% since its IPO and by 282% over the last year [1].

The company's recent big wins include CoreWeave exercising an option to expand data center licensing, boosting Applied Digital's growth outlook [2]. Applied Digital's stock has seen high levels of volatility since its public debut, but patient investors have been rewarded with substantial gains. The company's share price closed at $4.85 per share on its first day of trading, and a purchase of 100 shares at that price would have been equivalent to an investment of $485. Today, that investment would be worth approximately $1,480 [3].

Applied Digital's strong performance can be attributed to the growing demand for AI infrastructure, particularly in North America. The company's Ellendale HPC campus in North Dakota, with a 400 MW capacity, is a cornerstone of its strategy in this space. However, profitability remains elusive, with the company reporting a net loss of $139.4 million in Q2 2025, despite a 51% revenue jump [2].

The company's aggressive capital expenditures, including a $5 billion perpetual preferred equity facility with Macquarie Asset Management, have fueled its growth. However, these investments have also led to a significant debt load and a high debt-to-equity ratio, which could pose risks if interest rates rise or AI demand slows [2].

Investors should monitor Applied Digital's progress in securing long-term contracts, managing costs, and achieving profitability within the next 12-18 months. The company's ability to turn its capital-intensive bets into cash-generating assets will be crucial for sustaining its bull run. For now, APLD remains a high-risk, high-reward proposition, suitable for risk-tolerant investors who can stomach volatility in pursuit of AI's next big win [2].

References:
[1] https://www.fool.com/investing/2025/08/14/if-you-bought-100-shares-of-applied-digital-at-its/
[2] https://www.ainvest.com/news/applied-digital-163-share-price-surge-ai-centric-infrastructure-growth-bull-run-sustain-2508/
[3] https://www.nasdaq.com/articles/if-you-bought-100-shares-applied-digital-its-ipo-heres-how-much-money-youd-have-now