Applied Digital Stock Surges as H.C. Wainwright Raises Price Target

Applied Digital (APLD) shares rose 3.1% after H.C. Wainwright increased its price target to $20 and maintained a Buy rating. The analyst firm highlighted strong momentum and demand for HPC hosting services, as well as the company's plans to build a new facility and negotiate with a hyperscaler. The stock has been volatile, with 101 moves greater than 5% in the last year, but the market considers this news meaningful. Investors who bought $1,000 worth of shares five years ago would now be looking at an investment worth $271,838.

Applied Digital (APLD) shares experienced a 3.1% increase following H.C. Wainwright's decision to raise its price target to $20 and maintain a Buy rating on the stock. The analyst firm noted the company's strong momentum and intense demand for high-performance computing (HPC) hosting services. Additionally, H.C. Wainwright highlighted Applied Digital's plans to construct a new facility, Polaris Forge 2, in Harwood, North Dakota, with an estimated $3 billion construction budget and a 280MW power capacity [1].

The new facility is expected to be operational by mid-2026, with the first capacity expected in 2026 and full operations in early 2027. This expansion reflects Applied Digital's aggressive growth strategy, as evidenced by its 252% return over the past year. The company's revenue for the last twelve months was $144.19 million, and it has a high beta of 6.0, indicating significant volatility [1].

H.C. Wainwright expressed confidence in the company's ability to secure financing for the new facility, despite the 2026-27 construction timeline and the lack of named customers or labeled financing. The analyst firm noted that the overarching state of HPC demand suggests that financing should not be an issue. However, the company's current ratio of 0.77 and significant cash burn pose potential risks [1].

In other recent developments, Craig-Hallum raised its price target for Applied Blockchain to $18.00 from $12.00, maintaining a Buy rating. This adjustment was influenced by the company's recent 150MW expansion. The stock has been volatile, with 101 moves greater than 5% in the last year, but the market considers this news meaningful. Investors who bought $1,000 worth of shares five years ago would now be looking at an investment worth $271,838 [2].

Investors should carefully weigh the potential risks and rewards before making any investment decision. Applied Digital's strategic efforts to expand its infrastructure and secure additional capital for its projects reflect its commitment to growth in the HPC and AI markets.

References:
[1] https://www.investing.com/news/analyst-ratings/applied-blockchain-stock-price-target-raised-to-20-from-15-at-hc-wainwright-93CH-4208718
[2] https://finance.yahoo.com/news/craig-hallum-nearly-doubles-price-043856543.html