Applied Digital (APLD) had quite the day last Friday, rising dramatically after a stellar earnings report. With $64 million in revenue (an impressive 84% year-over-year increase), the company saw its stock price soar by 16%. For context, it has surged a remarkable 345% year-to-date. If you thought you missed the boat, think again.
As a builder of artificial intelligence (AI) data centers-an industry that’s practically bursting at the seams with demand-Applied Digital’s services are increasingly sought after. The meteoric rise in its stock price reflects this, but there’s one key factor that suggests this is just the beginning for the company.
The AI Boom: Applied Digital’s Prime Role
It’s no secret that hyperscalers-the colossal tech firms we’ve all heard about-are pouring massive investments into AI data centers. These AI systems require enormous computing power, and as the world’s appetite for AI continues to grow, so too does the need for more data centers. In fact, $430 billion was spent globally on data centers in 2024 alone, with projections from the Dell’Oro Group pointing toward a staggering $1.1 trillion by 2029.
Applied Digital has carved out a niche for itself by specializing in the construction of AI-specific data centers. And not just any old data centers-these are bespoke, tailor-made solutions designed to meet the exacting needs of its clients. This provides the company with a distinct edge in the market. Imagine, if you will, a bespoke suit that not only fits perfectly but is delivered to your doorstep in half the time it would take a standard one. That’s what Applied Digital is doing in the world of data centers.
Over the past two years, Applied Digital has made significant strides in improving its operational efficiency, slashing the time required to build a data center from 24 months to a mere 12. A key component of this is its choice of location for its Polaris Forge 01 campus in Ellendale, North Dakota, which enjoys a rather remarkable perk: over 220 days of free cooling each year. Free cooling-who knew such a thing existed? It’s like discovering an uncharted land where air conditioning costs are practically nonexistent.
Earlier this year, the company secured an $11 billion lease agreement with Coreweave, one of the many AI companies jostling for data center space. With demand for AI-driven infrastructure expected to skyrocket, Applied Digital is well-positioned to land more of these lucrative deals. Despite its impressive growth, the company’s market cap still hovers around $9 billion, and it’s currently trading at 35 times sales. Given these numbers, there’s plenty of room left for expansion.
In other words, if you’re sitting on the sidelines wondering if you missed your chance, rest assured-there’s still time to jump in. In fact, this may just be the perfect moment to start paying closer attention. The AI boom is barely getting started, and Applied Digital looks ready to play a pivotal role in the years to come.
Investing in Applied Digital today is like getting a first-class ticket to the future of computing. There’s no guarantee of smooth sailing, of course. But if you’re prepared for the ride, it might just be one of the most rewarding journeys you take. 🚀
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2025-10-15 14:24