Applied Digital CorporationNew lease with hyperscaler adds 210 MW capacity, $5.2B base revenue, indicating strong end-customer demand.

Applied Digital Corporation carries a consensus Buy rating with a 12-month median price target of $74.50, implying a potential upside of 90.25% from the current stock price. On June 9, Craig-Hallum raised its price target on the company from $75 to $79 and maintained a Buy rating after Applied Digital announced a new lease with a US-based high investment-grade hyperscaler. The research firm believes the new site is in Alabama and noted the company has now secured five leases, bringing total contracted capacity to 1.4 gigawatts. The latest agreement covers 210 megawatts of critical IT load under a 15-year take-or-pay structure with renewal options, expected to generate about $5.2 billion in base-term contracted revenue, or approximately $12.7 billion if all renewal options are exercised over 30 years.
Applied Digital CorporationNew lease with hyperscaler adds 210 MW capacity, $5.2B base revenue, indicating strong end-customer demand.