On October 10, 2025, Lake Street upgraded Applied Digital Corp (NASDAQ: APLD) to a "Buy" rating, with the stock priced at $29.29. Lake Street also raised its price target from $18 to $37. Applied Digital is a company that focuses on providing digital infrastructure solutions, particularly in data centers, to support the growing demand for AI and cloud services.
Following the upgrade, Applied Digital experienced a 28% surge in pre-market trading. This was driven by its impressive fiscal first quarter 2026 results and plans to expand data center capacity. The company's revenue for the quarter increased by 84% year over year, reaching $64.2 million, surpassing the analyst consensus estimate of $54.6 million.
Despite reporting a non-GAAP loss of $0.03 per share, Applied Digital exceeded Wall Street expectations. The company announced a new lease agreement with CoreWeave, securing an additional 150-megawatt lease for its Polaris Forge 1 campus. This agreement is expected to generate approximately $11 billion in lease revenue over 15 years.
The stock for APLD is currently priced at $38.77, reflecting a significant increase of 32.37% with a change of $9.48. Today, the stock has fluctuated between a low of $35.18 and a high of $39.07, marking its highest price over the past year. The lowest price for the stock in the past year was $3.31.
APLD has a market capitalization of approximately $10.14 billion, with a trading volume of 34 million shares today. The company is positioning itself to capitalize on the anticipated $350 billion investment by hyperscalers into AI deployment this year, highlighting its readiness to serve this growing market.
