Applied Digital (APLD) Surges 1.48% on $2.35B Financing and Data Center Expansion Trading Volume Hits $0.77 Billion Ranking 145th in U. S. Liquidity

Market Snapshot

On November 10, 2025, Applied Digital (APLD) surged 1.48%, with a trading volume of $0.77 billion, ranking 145th in terms of liquidity across U.S. equities. The stock’s performance reflects strong investor interest amid strategic moves to expand its data center infrastructure and secure long-term financing. Despite the moderate volume rank, the upward momentum aligns with recent corporate announcements, suggesting market confidence in the company’s growth trajectory.

Key Drivers

Applied Digital’s 1.48% gain on November 10, 2025, can be attributed to its announcement of a $2.35 billion senior secured notes offering. The offering, led by its subsidiary APLD ComputeCo LLC, aims to fund the construction of two new data centers—ELN-02 (100 MW) and ELN-03 (150 MW)—at its North Dakota campus, repay existing debts, and establish a debt service reserve account. The notes are secured by first-priority liens on APLD Compute’s assets, equity interests, and project accounts, reducing perceived risk for investors. This capital raise underscores the company’s commitment to scaling its high-performance computing (HPC) and AI infrastructure, a sector experiencing robust demand.

A second critical factor is Applied Digital’s strategic expansion into new markets and capacity enhancement. The company has completed a factory extension at its Ellendale campus, increasing revenue capacity to £200 million, and plans a new global distribution facility by early 2027. These investments are part of a broader growth strategy to deepen customer relationships and expand into Latin America and Asia. Additionally, the firm has secured a 15-year lease agreement with a U.S. hyperscaler for 200 MW of IT capacity at its Polaris Forge 2 Campus, valued at approximately $5 billion. Such long-term contracts provide revenue visibility and reinforce the company’s market position in the AI and cloud sectors.

Analyst sentiment further supports the stock’s positive momentum. Nine firms have issued “Buy” or “Outperform” ratings in the past six months, with price targets ranging from $35 to $43, reflecting optimism about Applied Digital’s ability to capitalize on AI-driven demand. Notably, Needham and Craig-Hallum have highlighted the company’s scalable infrastructure and favorable lease agreements as catalysts for growth. However, the offering’s reliance on debt financing has raised concerns about financial leverage, particularly given the company’s current debt-to-equity ratio of 0.67 and gross profit margin of 22.61%. Investors appear to balance these risks against the potential for 114% revenue growth in the current fiscal year, as projected by analysts.

The company’s operational milestones also contributed to the rally. The first phase of its Polaris Forge 1 campus in North Dakota has achieved “Ready for Service” status, with a 50 MW deployment under a 15-year lease with CoreWeave expected to generate $11 billion in lease revenue. This progress validates Applied Digital’s ability to execute large-scale projects, enhancing credibility with stakeholders. Additionally, a $1.5 billion power project with Babcock & Wilcox to supply one gigawatt of energy for an AI facility further solidifies the company’s infrastructure capabilities.

In summary, Applied Digital’s stock performance reflects a confluence of strategic financing, operational expansion, and favorable analyst outlooks. While the debt offering introduces financial risks, the company’s focus on high-growth AI and HPC markets, coupled with long-term revenue contracts, positions it to capitalize on evolving industry dynamics. The market’s positive reaction underscores confidence in its ability to deliver on ambitious growth targets.