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DALLAS - Applied Digital (NASDAQ:APLD), currently valued at $9.1 billion, has entered into an approximately 15-year lease agreement with a U.S.-based investment grade hyperscaler for 200 megawatts (MW) of critical IT capacity at its Polaris Forge 2 Campus near Harwood, North Dakota, according to a press release statement. According to InvestingPro analysis, the company appears overvalued at its current trading price of $32.54.
The agreement represents approximately $5 billion in total contracted revenue over the estimated lease term. The hyperscaler also holds a first right of refusal for an additional 800 MW, covering the full expansion potential of the 1-gigawatt campus. This significant contract comes as Applied Digital demonstrates strong revenue growth, with InvestingPro data showing a 28.43% increase in the last twelve months.
Construction of the Polaris Forge 2 Campus is currently underway, with the initial 200 MW expected to begin coming online in 2026 and reach full capacity in 2027. The facility is engineered to deliver a projected Power Usage Effectiveness (PUE) of 1.18 with near-zero water consumption.
The new lease brings Applied Digital’s total leased capacity across its North Dakota facilities to 600 MW with two global hyperscalers. The Polaris Forge 2 Campus spans more than 900 acres and is designed to support artificial intelligence and high-performance computing infrastructure.
"What sets us apart isn’t just the size of our pipeline - it’s how fast we can deliver," said Wes Cummins, Chairman and CEO of Applied Digital in the press release.
The announcement follows other recent developments for the company, including a 150 MW lease with CoreWeave at its Polaris Forge 1 Campus and a $5.0 billion AI infrastructure partnership with Macquarie Asset Management.
Applied Digital was recently ranked at the top of the Dallas Business Journal’s Fast 50, highlighting its rapid expansion in digital infrastructure. The company’s stock has reflected this growth, posting a remarkable 348% return year-to-date. Investors seeking deeper insights can access comprehensive analysis and 20 additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Applied Digital Corp reported its first quarter fiscal year 2026 earnings, surpassing analysts’ expectations with both revenue and earnings per share (EPS) exceeding forecasts. The company achieved an adjusted EPS of -$0.03, outperforming the anticipated -$0.14, while revenue reached $64.2 million, well above the projected $50.97 million. This strong performance has led several analyst firms to adjust their outlooks on Applied Digital. H.C. Wainwright doubled its price target for the company to $40, maintaining a Buy rating, highlighting the company’s hyperscaler datacenter build capabilities. Similarly, Needham raised its price target to $41, citing stronger-than-expected top-line results. Citizens also increased its price target to $40, attributing the raise to a one-time revenue contribution that boosted the fiscal first quarter results. Additionally, Applied Digital amended its Series G Convertible Preferred Stock terms, raising the minimum conversion price floor from $22.00 to $34.00. These developments reflect the company’s ongoing strategic adjustments and financial performance.
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