Applied Digital

Regulatory And Geopolitical Risks Will Impair Future Data Center Margins

AN

AnalystLowTarget

Not Invested

Community Contributor

Published

07 Aug 25

Updated

03 Jun 26

Views

239

03 Jun

US$39.62

AnalystLowTarget's Fair Value

US$40.00

1.0% undervalued

1Y

185.9%

7D

-16.2%

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1Y

185.9%

7D

-16.2%

You can edit this narrative until Jun 4 10:10 AM. Then, changes will post as Updates.

Author's Valuation

US$401.0% undervalued

AnalystLowTarget Fair Value

Shared on 03 Jun 26

APLD: Hyperscale Lease Concentration Will Threaten Long Term Cash Flow Certainty

Applied Digital is signing more long-term leases with big cloud customers and lining up funding to build much more data center capacity, which helps explain why analyst expectations are rising. The catch is that so much of the future income depends on a small number of customers and on getting huge projects connected to power and built on schedule.

6 views

Shared on 30 Apr 26

Fair value Increased 11%

APLD: Hyperscale AI Leases And Power Contracts Will Support Future Upside

Narrative Update Analysts have lifted their fair value estimate for Applied Digital to $40.00 from $36.00, citing updated price targets, a slightly lower discount rate, adjusted revenue growth and margin assumptions, and a higher future P/E multiple following recent research commentary highlighting contract visibility and continued interest in the shares on weakness. Analyst Commentary Recent research around Applied Digital has centered on price targets, contract visibility, and reaction to share price moves, with emphasis on how new contracts and customer relationships could influence earnings power and valuation multiples over time.

29 views

Shared on 19 Mar 26

APLD: Hyperscale Power Contracts And New AI Campuses Will Drive Future Upside

Analysts kept the fair value estimate for Applied Digital at $36.00, with small tweaks to assumptions such as a slightly higher revenue growth outlook, modestly stronger profit margins, and a somewhat lower future P/E multiple. This reflects ongoing interest around new hyperscaler leases and large power contracts tied to its AI infrastructure build out.

29 views

Shared on 04 Mar 26

APLD: Hyperscale Power Leases And New AI Campuses Will Drive Future Upside

Analysts are keeping their $36 price target on Applied Digital steady, citing recent hyperscaler leases, expanded AI infrastructure contracts, and continued buy ratings across the Street as reasons to maintain their existing valuation framework, even as they update assumptions for discount rate, growth, margins, and future P/E. Analyst Commentary Street research on Applied Digital has generally highlighted strong interest in its AI focused infrastructure model, supported by long term colocation leases and a growing pipeline of potential hyperscaler agreements.

29 views

Shared on 07 Jan 26

Fair value Increased 177%

APLD: Long Term Hyperscale Power Contracts Will Drive Future AI Campus Leasing

Narrative Update on Analyst Price Targets The analyst fair value estimate for Applied Digital has moved from US$13 to US$36. Analysts point to stronger expected EBITDA margins from the Polaris Forge projects, expanding power capacity for AI data centers, and a series of higher Street price targets in the mid US$30s to low US$40s as key drivers.

43 views

Valuator

Company Info

Notes

AnalystLowTarget Fair Value

US$40

1.0% undervalued

Future estimation in

Revenue

Profit Margin

Future PE

Est. Revenue

$

Forecast revenue growth rate

51.49%

Historical revenue growth rate

58.77%

IT revenue growth rate

0.72%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

%

0

Decrease

Increase

Current discount rate

9.33%

Calculation

US$203.74m

Earnings '29

x

89.26x

PE Ratio '29

=

US$18.19b

Market Cap '29

US$18.19b

Market Cap '29

/

350.08m

No. shares '29

=

US$51.95

Share Price '29

US$51.95 Share Price '29

Discounted to 2026 @ 9.11% p.a.

=

US$39.99

Fair Value '26