Applied Digital Corporation (NASDAQ:APLD) has about $36 billion in contracted revenue. It expects to bring more than 600 megawatts online over the next 12 months, compared with 250 megawatts over the past 12 months. But the company’s market cap stands at only about $7.39 billion. What is behind the gap between those numbers? APLD’s contracted revenue and expansion plans make it an interesting growth story. But where does it rank among the 10 aggressive growth stocks Wall Street analysts are recommending?
$36 Billion Contracted, Not Yet Built
The backlog covers five campuses across three states. Management plans to add about 250 megawatts of new leases by year-end, with materially higher pricing, and wants to reach 3.5 to 4 gigawatts of operating capacity by the end of 2030. In addition, the company signed a power deal for a 1,200-megawatt gas plant in North Dakota, with deliveries starting in 2030.
The challenge is that current revenue still depends heavily on construction work. Of $341.9 million in quarterly revenue, tenant fit-out services accounted for $183.5 million, while base rent contributed only $65.8 million. Applied Digital reported a $221 million net loss attributable to common shareholders from continuing operations, although its adjusted loss was just $4.1 million. The contracts are substantial, but most of the revenue they could generate is still in the future. With much of the company’s expected revenue still ahead, investors may want to look at what short sellers are betting against, and whether the fundamentals are beginning to turn. APLD ranks third on our list of 10 stocks with high short interest and improving fundamentals.
Can Applied Digital Afford Its Own Growth?
At 8.9x forward sales, Applied Digital is already priced for significant growth even as its heavy infrastructure spending puts pressure on cash flow. That investment is needed to turn its contracts into revenue, but it also requires funding. The company carries roughly $6.4 billion of debt against $2.9 billion in cash.
There are also permitting and development risks. Management points to local moratoriums, tighter zoning rules, and longer permitting timelines. If projects are delayed, revenue gets pushed back while the debt remains.
That, in my view, is the reason for the gap. The backlog is attracting interest, but the stock ultimately depends on delivering those projects on time and securing financing at an affordable cost.
Applied Digital saw hedge fund ownership rise from 39 funds at the end of Q1 2026 to 59 funds at the end of Q2 2026. At the same time, short interest remained elevated at 20.92% of float as of September 15, 2026.
APLD has real contracts and growing hedge fund ownership. However, the $6.4 billion debt load, heavy short interest, and construction-driven revenue add to the risks. Execution and financing will be key factors for the stock.
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