Applied Digital (NASDAQ: APLD) is an AI infrastructure stock that has rapidly expanded its data center portfolio. Applied Digital has already secured a long-term contract with a hyperscaler and they look to significantly expand this client base over the next few years.
The opportunity is significant, but so are the risks. Applied Digital remains a capital-intensive business with billions of dollars of debt, substantial construction requirements and considerable customer concentration. Investors therefore need to determine whether the company’s extraordinary growth potential is already reflected in APLD’s price to sales valuation of 14.
Wall Street is overwhelmingly bullish, where the average analyst price target currently sits near $74 which is considerably higher than today’s share price of $26.87. That raises an obvious question: Could APLD stock really reach $75 in 2027?
Applied Digital Stock Forecast 2027
Wall Street X forecasts Applied Digital stock will reach $80.64 by August 2027, representing approximately 180% upside from its current price.
Our Applied Digital stock forecast is based on the company’s expected revenue growth, valuation, expanding AI data center portfolio and the long-term revenue associated with its contracted capacity.
The bullish case has strengthened considerably over the past year. Applied Digital generated $611.3 million of revenue in fiscal 2026, an increase of 167% from the previous year, as its HPC Hosting business began contributing meaningfully to results.
More importantly, Applied Digital has secured approximately 1.4 gigawatts of contracted critical IT load across five campuses. These agreements represent approximately $36 billion of contracted revenue over their initial 15-year terms, potentially increasing to approximately $86 billion if all renewal options are exercised.
When extrapolated, that could work out to an average of $5.7B per year just given their current contracts, which makes them look incredibly undervalued at their current market cap of $7.8B.
However, investors shouldn’t confuse contracted revenue with immediate revenue or profit. Much of this capacity remains under construction and will take years to become operational. Applied Digital’s ability to deliver those projects on schedule and finance their construction will be critical to whether APLD ultimately reaches our optimistic forecasts.
Can Applied Digital Stock Reach $75?
A $75 Applied Digital stock price is certainly possible, but reaching that level would require investors to continue assigning a substantial valuation to the company’s future revenue.
At approximately $27 per share, a move to $75 would represent roughly 180% upside. It would also value Applied Digital’s equity at approximately $21.9 billion, which is over $13 billion higher than where it is today at $8.4 billion.
The $75 target isn’t merely a speculative number.
The current average Wall Street price target for APLD is approximately $74.23, with analyst targets ranging from roughly $37.50 to $109. Ten analysts currently rate Applied Digital a Buy, while one rates it a Hold and none rate it a Sell.
In order to hit that $75 mark however, Applied Digital is really going to need to pad out their contracted pipeline and build up their order sheet while they get their data centers online. This will allow investors to price in that forecasted revenue and keep the valuation high, where it will need to be if it hopes to hit the $75 mark in the next few years.
Why Applied Digital Stock Could Keep Rising
The biggest reason Applied Digital stock could continue rising is straightforward: demand for AI infrastructure remains enormous, and Applied Digital has already secured a hyperscaler customer.
Applied Digital designs, develops and operates purpose-built data centers for AI workloads. Rather than competing directly with semiconductor companies to design AI chips, Applied Digital provides the physical infrastructure required to deploy increasingly power-hungry computing systems.
The company’s contracted portfolio has also expanded rapidly. Applied Digital now has approximately 1.41 GW of contracted critical IT load across five campuses. Its long-term leases represent roughly $36 billion of contracted base-term revenue.
Applied Digital has also demonstrated that it can begin converting its development pipeline into actual operating capacity. The first 100 MW data center at Polaris Forge 1 became operational in October 2025, while another 75 MW was delivered in June 2026, bringing live capacity at the campus to 175 MW.
If Applied Digital successfully delivers it’s remaining contracted projects, their revenue base will look dramatically more robust; in addition to hopefully more added capacity in the way of new contracts.
Applied Digital Revenue and Earnings Forecast
Applied Digital’s recent growth has been exceptional.
Fiscal 2026 revenue reached $611.3 million, compared with $228.6 million in fiscal 2025, representing approximately 167% year-over-year growth.
Fourth-quarter revenue alone reached approximately $258.7 million, compared with $51.1 million during the same quarter a year earlier.
The company’s HPC Hosting segment is becoming increasingly important. HPC Hosting generated approximately $203 million of fourth-quarter revenue, including base rent, tenant fit-out services and tenant recoveries.
Despite that growth, Applied Digital remains unprofitable under GAAP accounting. The company reported a fiscal 2026 net loss attributable to common shareholders of approximately $249 million.
That makes revenue growth, operating profitability and cash generation particularly important metrics for APLD right now if they are looking to keep their valuation propped up.
Current analyst estimates expect revenue of approximately $838 million for fiscal 2027, representing roughly 37% growth. Longer-term expectations could rise substantially as additional contracted data center capacity becomes operational.
Applied Digital Analyst Price Targets
Wall Street is currently extremely bullish on Applied Digital stock.
The average 12-month APLD analyst price target is approximately $74.23, compared with a current share price below $30. That represents potential upside of well over 150%.
Analyst targets currently range from approximately $37.50 at the low end to $109 at the high end, demonstrating just how much uncertainty surrounds Applied Digital’s future valuation.
That creates considerable upside if Applied Digital executes successfully, but it also creates considerable downside if projects are delayed where financing may become more expensive or hard to find if profitability fails to materialize.
Is Applied Digital Stock Overvalued?
Applied Digital currently trades at a price to sales ratio of about 14, which over 3 times higher than the broader S&P’s current valuation of 3.7. However, APLD’s revenue is expected to grow by 167% over the next 12 months compared to the average S&P revenue forecast of 7.2%.
When adjusted for growth, APLD’s PSG ratio of 0.08 is significantly better than the S&P’s 0.51. This implies that APLD is currently undervalued compared to the S&P when both valuation and growth are accounted for.
Is APLD Stock a Buy?
Wall Street X currently rates Applied Digital a STRONG BUY, with a 2027 price forecast of $80.64, representing an upside potential of nearly 180%.
The bullish case rests on Applied Digital’s approximately $36 billion contracted lease portfolio, rapidly expanding HPC business and exposure to continued investment in artificial intelligence infrastructure.
The bearish case centers on the billions of dollars required to build that infrastructure, substantial debt, customer concentration and the possibility that investors are already pricing years of future growth into APLD shares.
For investors comfortable with volatility and execution risk, Applied Digital offers one of the more direct ways to gain exposure to the construction of next-generation AI infrastructure. More conservative investors may prefer to wait for additional facilities to become operational and for the company’s recurring rental revenue and profitability to become more established.
Ultimately, whether APLD reaches $75 will depend less on AI hype and more on something measurable: whether Applied Digital can turn its enormous contracted pipeline into profitable operating data centers.
Applied Digital Stock Forecast FAQ
What is the Applied Digital stock forecast for 2027?
Wall Street X forecasts Applied Digital stock will reach $80.64 by August 2027, implying approximately 180% upside from its current share price. The forecast considers Applied Digital’s expected revenue growth, valuation, contracted AI data center portfolio and the risks associated with financing and delivering its expansion.
Can APLD stock reach $75?
Yes, APLD stock could reach $75, particularly if Applied Digital successfully brings its contracted AI data center capacity online and converts its development pipeline into recurring rental revenue. The target is also close to Wall Street’s current average 12-month price target of approximately $74. However, reaching $75 would require continued execution and strong demand for AI infrastructure.
What is the average APLD analyst price target?
The current average analyst price target for Applied Digital is approximately $74.23, with individual targets ranging from roughly $37.50 to $109. The wide range reflects significant uncertainty about how quickly Applied Digital can develop its contracted capacity and how investors should value its future revenue.
Is Applied Digital stock a buy?
Wall Street analysts are overwhelmingly bullish on Applied Digital, with the current consensus at Strong Buy. Wall Street X also rates APLD STRONG BUY based on its proprietary forecast and valuation methodology. Investors should nevertheless consider Applied Digital’s substantial debt, capital requirements and customer concentration before buying the stock.
Why could Applied Digital stock rise?
Applied Digital stock could rise if the company successfully converts its approximately 1.4 GW of contracted critical IT load into operating AI data centers. Its existing contracts represent roughly $36 billion of base-term lease revenue, providing a potentially large long-term growth runway if projects are delivered on schedule.
