I recently spoke with a hedge fund analyst in Dallas who described the APLD stock as a rollercoaster. He saw it go up at the opening bell, only to drop 10% by lunchtime. This is typical for Applied Digital: quick gains after positive earnings reports, followed by sharp drops due to market worries. Yet, it’s always a hot topic among tech and finance experts who see long-term trends early on.
What’s Applied Digital? Here’s the Business
Applied Digital (NASDAQ: APLD) was first known for providing resources to crypto mining companies. Since 2023, the company has changed its focus, creating large data centers for AI, designed for high-level computing, machine learning, and cloud tasks. Their U.S. facilities provide:
Cloud computing and hosting for AI, blockchain, and business data processing.
GPU performance and energy-saving design, appealing to companies like CoreWeave, which recently signed a deal for over $7 billion for 150 megawatts of hosting.
Revenue comes from hosting contracts, data infrastructure as a service, and specialized hardware leasing.
Numbers and Key Financials
Price: $23.97 (September 22, 2025); up 17% today and a 52-week high.
Market Cap: $6.26 billion.
Volume: 25.13M shares; the average is 31.4M showing active trading recently.
EPS: -$0.80; PE Ratio: -29.96 (reflects losses but growth investment).
Revenue (TTM): $144.2 million; up 5.5% year-over-year.
Net Loss: -$233.7 million; losses increased 56% in 2025 as capital spending drives future growth.
52-Week Range: $3.31 to $24.09; up nearly 7X from low to high.
Beta: 6.46 very high compared to the market.
Why APLD Stock Is Moving
AI Demand: Wall Street and Silicon Valley are investing in AI computing, and APLD is a key resource provider for CoreWeave and other AI-focused clients, boosting earnings and stock prices.
Earnings: Applied Digital has beaten revenue estimates in recent quarters, with improved EPS, even with ongoing losses.
Major Deals: The $7B lease with CoreWeave is a big win, providing recurring revenue that helps stabilize cash flow.
Analyst Opinions: Eleven analysts rate the stock a Strong Buy, but average price targets ($14.73–$18.00) are below the current price after the recent increase, cautioning against chasing too quickly.
What It’s Like to Invest in APLD
Many investors describe volatile days: shares jump on deal news, fall due to market issues, and then rise again with AI excitement. To hold APLD stock, you need to be comfortable with risk, enter carefully, and watch news, earnings, and market feelings.
Analyst Outlook and Expectations
Price Targets: $13.00–$24.00; median $18.00 for the next 12 months (versus a ~$24 current price).
Strong Buy Recommendations: The positive view is based on long-term AI demand and better profit margins as legacy businesses are replaced by long-term hosting revenue.
Bear View: High losses, capital needs, and growth plans mean dilution and risk if demand does not materialize.
Steps for Investors
Watch the Spending: Applied Digital spends money to build new facilities track capital spending and contract wins.
Focus on AI Revenue: Track how much business comes from top clients versus diverse clients.
Pay Attention to Earnings: The next report is due Oct 8, 2025 expect movements based on new revenue forecasts.
Set Stops: With a beta over 6, manage your risk consider using trailing stops or scaling in slowly.
Know the Sector: APLD is part of a changing group compare moves to stocks like IREN, MARA, and RIOT for context.
Risks and How to Avoid Them
Momentum Traps: Buying after gains can lead to losses look for dips or calm periods before buying.
Execution Risks: If deals fail or demand goes down, shares can react.
Finances: Debt and negative cash flow mean offerings are possible read filings.
Sources
Data is based on real-time NASDAQ quotes, analyst coverage from StockAnalysis and TickerNerd, and news from Yahoo Finance and The Motley Fool. Financials come from quarterly reports and investor materials.
Conclusion: APLD Stock AI with Risk and Upside
APLD stock is a bet on cloud and AI, giving investors a look at a fast-growing market. The steep climbs and drops require analysis, investing, and willingness to size positions for changes. If you can handle the risk, APLD stock could perform well in the digital infrastructure market.
Are you on the APLD stock rollercoaster? Share your opinion or contact an advisor for help.
