
APLD Stock Forecast & Price Target
APLD Analyst Ratings
Bulls say
Applied Digital Corp is experiencing a notable revenue boost, highlighted by a 39% increase in High-Performance Computing (HPC) revenues, suggesting strong market demand for its digital infrastructure solutions. The company's first quarter revenues for FY26 reached $64.2 million, reflecting substantial growth compared to $34.8 million from the previous quarter, indicating effective execution of its business strategy. Furthermore, the potential expansion of its facility capacity, with projects such as the Ellendale pipeline, positions Applied Digital to capitalize on significant future revenue opportunities, aiming towards a revenue potential of approximately $250 billion annually by 2028-2030.
Bears say
Applied Digital Corp faces significant challenges, as evidenced by gross margins falling to 13% compared to the projected 19%, primarily due to high fit-out costs. The company's financial outlook is further threatened by macroeconomic headwinds and supply chain disruptions, which could exacerbate delays in crucial components and negatively affect GPU deliveries. Additionally, the impending bitcoin halving in Q2 2024 is anticipated to diminish margins for the company's BTC mining customers, raising concerns over future contract viability and intensifying competition from independent hosting operations that provide lower rates.
This aggregate rating is based on analysts' research of Applied Digital Corporation and is not a guaranteed prediction by Public.com or investment advice.
APLD Analyst Forecast & Price Prediction
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