Applied Digital (APLD) Targets Hyperscaler Deal; Craig-Hallum Maintains Buy

Applied Digital Corp. (NASDAQ:APLD) is one of the best performing data center stocks to buy now. On September 15, Craig-Hallum analyst George Sutton reiterated a Buy rating on the company with a $23 price target, citing continued execution in scaling its AI-focused infrastructure.

The update followed the company’s regulatory filing on September 12, in which the company announced progress on its Polaris Forge 1 development. The site, designed to support 1 gigawatt of capacity, will have its first 100-megawatt facility operational in Q4 2025, followed by additional 150-megawatt facilities in 2026 and 2027. These long-term leases are expected to provide steady cash flow and fund future growth.

Applied Digital (APLD) Targets Hyperscaler Deal; Craig-Hallum Maintains Buy

Applied Digital also broke ground on Polaris Forge 2 in September, a $3 billion AI campus near Harwood, North Dakota, with 200 megawatts of initial critical IT load and potential for expansion. Early operations are targeted for 2026, with full capacity by 2027.

Interestingly, management noted it is in advanced discussions with a U.S.-based investment-grade hyperscaler for an anchor lease. Securing such a customer would broaden Applied Digital’s client mix and demonstrate its capacity to support large-scale AI infrastructure.

The company is also reviewing options for its Cloud Services division to sharpen its focus on data centers, a strategy expected to drive long-term shareholder value.

Applied Digital (NASDAQ:APLD) develops and operates data centers in North America designed for high-performance computing and artificial intelligence workloads.

While we acknowledge the potential of APLD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than APLD and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.