Applied Digital Corporation (NASDAQ:APLD) is one of the 10 Best Under-the-Radar Data Center Stocks to Buy. The stock’s price skyrocketed 704.71% in the past year, while it registered a 15.37% increase year-to-date. Based on analyst consensus, Applied Digital continues to receive a Strong Buy rating, with an average price target of $46.00, implying upside from the current price of $32.43.
On April 23, the company announced it had entered into a lease agreement with a new U.S.-based high investment-grade hyperscaler at its 430- megawatt (MW) Delta Forge 1 AI Factory campus worth approximately $7.5 billion in total contracted value. The lease agreement spans an estimated 15-year lease term and covers 300-MW worth of critical IT load, purpose-built to support the unidentified hyperscaler’s artificial intelligence (AI) and high-performance compute (HPC) infrastructure.
Applied Digital Chief Executive Officer Wes Cummins said the company remains focused on delivering operational AI capacity at scale. He added:
“With this agreement, we now have two U.S. based investment-grade hyperscalers across our portfolio, marking an important step in the continued diversification of our customer base and strengthening the overall quality and visibility of our contracted revenue. Our priority remains execution –– bringing capacity online on schedule and operating it with discipline over the long term.”
Earlier, on April 8, the company reported a 139 percent rise in revenue to $126.6 million in the fiscal third quarter, up from $52.9 million in the same period last year. Applied Digital attributed the increase to its HPC Hosting Business, which generated approximately $71.0 million during the period. The HPC Hosting Business designs, builds, and operates next-generation data centers, providing massive computing power to support HPC applications in a cost-effective model.
The company said operations commenced at its first HPC data center, Polaris Forge 1, with 100 MW of capacity in the previous quarter. It added that a second 150 MW HPC data center is under construction at the same campus and is expected to come online in calendar 2026, while a third 150 MW facility is anticipated in calendar 2027.
Applied Digital Corporation (NASDAQ:APLD) designs, builds, and operates high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. In 2025, the company was named Best Data Center in the Americas at the Global Datacloud Awards.
While we acknowledge the risk and potential of APLD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APLD and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Best Data Center Stocks to Buy for the Long Term and 8 Best Automotive Stocks to Buy According to Analysts.
Disclosure: None. Follow Insider Monkey on Google News.
