Important points
of artificial intelligence The (AI) boom is now entering a new phase. Rather than just focusing on advanced chips and AI models. hyperscalercloud providers, and enterprise customers are increasingly investing in reducing bottlenecks with AI-optimized data center capacity with high power density and advanced cooling systems.
applied digital (NASDAQ:APLD) is one of the AI infrastructure players riding this AI wave, with the potential for extraordinary returns in the long term.
Where to invest $1,000 now? Our team of analysts has revealed what they believe. Best 10 stocks Buy now. Continued “
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Demand visualization
Applied Digital already has nearly 600 megawatts of power under contract. data center The overall capacity of the Polaris Forge 1 and Polaris Forge 2 campuses in North Dakota is expected to generate approximately $16 billion in lease revenue over the next 15 years. Polaris Forge 1’s approximately 400 megawatts of capacity is leased to the following companies: coreweaveMeanwhile, Polaris Forge 2’s 200 megawatts of capacity is leased to an unnamed “investment-grade” hyperscaler. This greater visibility into demand has increased the predictability of the company’s revenue and cash flow.
Applied Digital has designed the Polaris Forge 1 and Polaris Forge 2 campuses with significant expansion room, with each site able to grow to at least 1 gigawatt of total capacity, and possibly more than 2 gigawatts, with expansion tied to power and infrastructure availability. The company has also begun work on Delta Forge 1, a 430-megawatt AI data center campus. This highlights the company’s confidence in its continued data center demand and ability to execute at scale.
Solid financial structure
Applied Digital’s recent financials are impressive. Revenues for the second quarter of 2026 (ending November 30, 2025) were $126.6 million, an increase of 250% compared to the same period last year. Average Wall Street forecasts are for sales to increase to approximately $346.7 million in fiscal year 2026 and approximately $546 million in fiscal year 2027.
Considering all these tailwinds, Applied Digital seems like a smart buy right now. To get from $1,000 to $1 million, you need a 1,000% return, and I think Applied Digital Stocks can do that.
Should you buy Applied Digital stock now?
Before buying Applied Digital stock, consider the following:
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Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any stocks mentioned. The Motley Fool has Disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.