TLDR
- APLD closed at $13.86, up 8.54% on June 6
- $200M equity offering and $7B lease deal with CoreWeave drive momentum
- Stock surged 145% over the last month and 181.71% over the past year
- May jobs report increased optimism for rate cuts, fueling tech stock rally
- Annual revenue growth forecasted at 38.4% over the next 3 years
Applied Digital Corporation (NASDAQ: APLD) closed at $13.86 on June 6, gaining 8.54% on the day.
Applied Digital Corporation (APLD)
This marked another strong session in a breakout month for the AI infrastructure company. Shares have skyrocketed 145% in the past month and are now up 181.71% over the last year. The gains come on the heels of pivotal developments, including two long-term lease agreements with AI hyperscaler CoreWeave and a $200 million follow-on equity offering.
These lease agreements are expected to generate approximately $7 billion in revenue over the next 15 years. The deals significantly strengthen Applied Digital’s foothold in the high-demand AI data center market. Analysts see this positioning as a major growth inflection, especially as AI infrastructure becomes increasingly critical across sectors.
Applied Digital (NasdaqGS:APLD) Reports $200 Million Follow-On Equity Offering https://t.co/lhydxP55qN
— Drmikemyers (@drmikemyers) June 7, 2025
Massive Follow-On Equity Offering
As part of its capital expansion, Applied Digital launched a $200 million follow-on equity offering. This move supports infrastructure build-out and provides capital flexibility. While such offerings can dilute existing shareholders, investor sentiment remains bullish.
The stock now trades significantly above the consensus price target of $9.94, signaling continued enthusiasm over the company’s long-term potential.
Economic Tailwinds Support the Rally
Investor appetite for growth stocks like APLD got a further boost from the latest U.S. jobs data. The Bureau of Labor Statistics reported 139,000 net job gains in May, beating forecasts of 125,000. At the same time, April and March numbers were revised downward. This pattern suggests a steadily expanding economy with reduced inflationary pressure.
In turn, it raises the probability of a Federal Reserve rate cut, a favorable condition for capital-intensive tech players.
Outlook and Valuation
Despite the recent run-up, Applied Digital is valued at about 12 times this year’s expected sales—a level that reflects strong investor confidence but may still offer room to grow. Analysts project revenue to rise by 38.4% annually over the next three years. Still, risks remain. The company faces challenges in transitioning to new business models and managing high debt levels.
Its next earnings report is expected on August 26, 2025, and will be a critical checkpoint for investors assessing the pace and stability of Applied Digital’s expansion.
Performance Snapshot
Compared to the S&P 500’s 2.02% YTD return, APLD boasts an impressive 81.41%. Over the past three years, the stock has returned 265.7%, far exceeding the S&P 500’s 45.59%. This sharp divergence illustrates the market’s growing confidence in Applied Digital’s future as an AI infrastructure leader.
