Update shared on26 Sep 2025
Fair value Increased 5.56%Applied Digital's consensus price target has been raised to $21.11, reflecting increased long-term revenue visibility from CoreWeave’s 400 MW lease, valuation uplift from new datacenter sites, and growing confidence in sustained demand and market share, particularly as further contract discussions progress.
Analyst Commentary
- Bullish analysts highlight the full lease execution at Ellendale (400 MW) by CoreWeave, providing long-term contractual revenue visibility (approx. $11B over 15.5 years).
- Recent valuation reassessments now factor in the potential of Applied Digital’s additional North Dakota sites and a new South Dakota facility.
- Bullish analysts cite strong private transaction multiples and cap rates in the datacenter space, indicating Applied Digital’s stock remains undervalued relative to peers and pipeline potential.
- The company’s growing momentum is noted following CoreWeave’s expansion and execution of lease options, improving customer diversification and utilization rates.
- Management’s disclosure of advanced contract discussions with additional hyperscale customers boosts confidence in sustained demand and further market share gains.
What's in the News
- Raised $50 million in funding via an 8% promissory note with Macquarie Equipment Capital.
- Finalized a new 150MW lease with CoreWeave at the Polaris Forge 1 Campus, raising total anticipated contracted lease revenue to ~$11 billion.
- Announced plans to break ground on Polaris Forge 2, a $3 billion, 280MW AI Factory in North Dakota, securing 900+ acres and power arrangements.
- Partnered with BASX to deploy a customized, highly efficient free cooling chiller system at Polaris Forge 1, enhancing energy efficiency and sustainability for high-density AI workloads.
Valuation Changes
Summary of Valuation Changes for Applied Digital
- The Consensus Analyst Price Target has risen from $20.00 to $21.11.
- The Future P/E for Applied Digital has risen slightly from 81.95x to 85.98x.
- The Discount Rate for Applied Digital has fallen slightly from 9.37% to 9.15%.
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