Applied Digital (APLD) Is Up 10.9% After Deepening AI Data Center Shift With CoreWeave Leases

• In its third-quarter and nine-month results to February 28, 2026, Applied Digital reported revenue rising to US$126.64 million and US$352.56 million respectively, while net losses widened in the quarter to US$100.86 million but narrowed over nine months to US$138.55 million, with lower basic loss per share over the longer period.
• Alongside these earnings, Applied Digital’s deepening AI data center focus and expanded CoreWeave leasing arrangements highlight its shift away from crypto exposure toward long-term, AI-driven infrastructure contracts.
• Next, we’ll examine how Applied Digital’s expanded CoreWeave lease commitments could reshape its investment narrative around long-term AI infrastructure growth.

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Applied Digital Investment Narrative Recap

To own Applied Digital, you have to believe its pivot from crypto hosting to long-duration AI data center leases can eventually outweigh today’s heavy losses and capital needs. The latest results, with revenue up sharply but quarterly net losses widening to US$100.86 million, keep the core short term debate intact: can new AI contracts scale fast enough to ease balance sheet pressure before debt and cash burn become the binding constraint?

The April 1 amendment to Applied Digital’s CoreWeave leases looks most relevant here. By adding a corporate guarantee and a US$50 million letter of credit behind the 250 MW Polaris Forge 1 commitments and an option for a further 150 MW, the company has reinforced the credit quality of its largest AI customer exposure, which speaks directly to both the main growth catalyst and the concentration risk investors are weighing.

Yet beneath the AI growth story, investors should be aware of how much the rising debt load could limit flexibility if...

Read the full narrative on Applied Digital (it's free!)

Applied Digital's narrative projects $755.7 million revenue and $102.2 million earnings by 2028. This requires 73.7% yearly revenue growth and a $263.2 million earnings increase from $-161.0 million today.

Uncover how Applied Digital's forecasts yield a $45.27 fair value, a 47% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were assuming revenue could reach about US$1.6 billion with earnings near US$640 million, which is a far more aggressive path than the baseline view and highlights just how differently you might weigh the upside of long term AI contracts versus the strain of heavy debt and crypto exposure.

Explore 24 other fair value estimates on Applied Digital - why the stock might be worth less than half the current price!

Form Your Own Verdict

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Applied Digital research is our analysis highlighting 1 key reward and 5 important warning signs that could impact your investment decision.
• Our free Applied Digital research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Applied Digital's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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