Can Applied Digital’s (APLD) Latest Fundraise Reshape Its AI Infrastructure Ambitions?

• In late September 2025, Applied Digital Corporation filed a shelf registration to offer 8,393,611 shares of common stock, seeking to raise US$196.8 million to fund its capital needs.
• This capital raise highlights Applied Digital’s ongoing shift from cryptocurrency mining toward the rapidly growing AI and high-performance computing infrastructure segment, supported by major partnerships such as the 150MW lease with CoreWeave.
• We'll explore how Applied Digital's expanded AI data center partnership with CoreWeave influences the company's investment case and future growth outlook.

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Applied Digital Investment Narrative Recap

To be a shareholder in Applied Digital today means buying into the thesis that demand for AI and high-performance computing infrastructure will outpace legacy ties to crypto mining and justify aggressive capital spending. The recent shelf registration to raise US$196.8 million meaningfully addresses near-term capital needs, but also magnifies attention on whether new funding can accelerate AI data center buildouts and relieve balance sheet risk, the biggest current catalyst and risk, respectively. The immediate impact centers on Applied Digital’s ability to execute and deploy capital efficiently rather than altering these fundamental drivers.

One of the most relevant announcements is the expanded 150MW lease with CoreWeave at Polaris Forge 1, taking total contracted revenue to about US$11 billion. This long-term partnership directly strengthens Applied Digital's pursuit of recurring revenue and scales up the most critical driver of future growth, but it also deepens customer concentration risk by tying fortunes to a select few hyperscalers.

By contrast, investors should be aware that the balance sheet risk, especially the growing reliance on external funding, continues to warrant close attention as expansion ramps…

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

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

Uncover how Applied Digital's forecasts yield a $21.11 fair value, a 20% downside to its current price.

Exploring Other Perspectives

Twenty-nine perspectives from the Simply Wall St Community place Applied Digital’s fair value between US$2.11 and US$24 per share. While most expect robust revenue from large AI leases, concentrated customer risk could have wider consequences for long-term performance, investor opinions and future outcomes may differ considerably.

Explore 29 other fair value estimates on Applied Digital - why the stock might be worth as much as $24.00!

Build Your Own Applied Digital Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Applied Digital research is our analysis highlighting 1 key reward and 3 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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