Roth Capital Elevates Applied Digital (APLD) PT to $17.50 Following CoreWeave Lease Deal

On Tuesday, Roth Capital increased its price target for Applied Digital Corporation (NASDAQ:APLD) to $17.50 from $8.50, while keeping a Buy rating on the shares. The upgrade follows the company’s recent signing of two long-term lease agreements with CoreWeave Inc. (NASDAQ:CRWV), which is an AI hyperscaler. The two lease agreements are anticipated to generate ~$7 billion in total revenue for Applied Digital over their term.

An overhead view of a large-scale data center with rows of servers and blinking lights.

Under the terms of the agreements, Applied Digital will provide 250MW of critical IT load to host CoreWeave’s AI and HPC infrastructure at its Ellendale, North Dakota data center campus, which is designed to host up to 400MW. The first 100MW data center for CoreWeave is expected to be ready for service in Q4 of the calendar year 2025, with a second 150MW facility currently under construction and anticipated to be operational by mid-2026. CoreWeave also holds an option for a third 150MW data center, which is currently in the planning stages for a 2027 launch.

Applied Digital’s FQ3 2025 results showed total revenues of $52.9 million, which was an increase of 22% year-over-year. This included $35.2 million from data center hosting and $17.8 million from cloud services. Notably, the company operates 286MW of fully contracted data center hosting capacity at full utilization. The construction of the Ellendale campus is on schedule, with the first building expected to generate revenue by FQ4 2025.

Applied Digital Corporation (NASDAQ:APLD) designs, develops, and operates digital infrastructure solutions and cloud services for HPC and AI industries in North America. It operates through three segments: Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business.

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