$APLD

UBS initiated coverage on Applied Digital (APLD), highlighting its AI data center operations. The stock has seen volatility, with a 30.9% drop over 90 days but a 19.8% gain over 1 year. Bulls see growth potential, while bears point to debt and customer concentration. The company secured a $7B, 15-year lease with CoreWeave, supporting future revenue. Analysts debate its valuation, with a fair value estimate of $68.35 vs. a last close of $27.06.

Applied Digital (APLD) and IREN (IREN) are transitioning from crypto to AI infrastructure. APLD reported $611.3M revenue, -$244M net loss, and a 4.0x current ratio. IREN reported $707M revenue, -$702.6M net loss, and a 3.6x current ratio. IREN secured contracts with Microsoft (MSFT) and Nvidia (NVDA). Both face risks but IREN's customer base is seen as a stronger foundation.

Applied Digital reports $36B in long-term lease value, 1.41GW contracted IT load, with clients like Oracle (ORCL), CoreWeave (CRWV), and Nvidia (NVDA). High-performance computing margins at 91%, exceeding guidance. Analysts note lower new deal yields and sector caution, with a mean target price of $67.89, implying 141% upside.

UBS initiated coverage on five AI data center colocation stocks with Buy ratings, citing rapid growth potential due to constrained compute supply and favorable power access. The stocks are Hut 8 Mining Corp (HUT), TeraWulf (WULF), Applied Digital (APLD), Core Scientific (CORZ), and Cipher Digital (CIFR). UBS estimates the group has secured 5GW of leased capacity, worth $125 billion, with an additional 12GW in the pipeline.

UBS initiated coverage of five AI data center operators with Buy ratings, citing strong lease signings and tenant quality. The firms include Core Scientific (CORZ), Cipher Mining (CIFR), Applied Digital (APLD), TeraWulf (WULF), and Hut 8 (HUT). UBS estimates significant upside, with TeraWulf leading at 40% and Applied Digital at 33%. Key catalysts include new leases, tenant shifts, and potential REIT conversion.

UBS initiated coverage on colocation data center stocks, citing constrained AI compute supply and strong demand. The bank projects 80% annual EBITDA growth from 2027-2029 and values shares at 12-18x 2028E EBITDA. Companies mentioned include Core Scientific, Cipher Digital, Applied Digital, and Hut 8, with varying risks and opportunities noted.

Stifel upgraded Microsoft (MSFT) to Buy with a $575 price target, citing sustained revenue growth. Susquehanna upgraded RXO Inc. (RXO) to Neutral with a $19 target. JPMorgan upgraded Graphic Packaging (GPK) to Overweight with an $11.50 target. RBC upgraded Lakefront Biotherapeutics (LKFT) to Outperform with a $45 target. Guggenheim upgraded Editas Medicine (EDIT) to Buy with a $5 target. Wedbush downgraded Compass Therapeutics (CMPX) to Neutral with a $1 target.

Morgan Stanley forecasts a 33 GW US data-center power shortfall, despite chip efficiency improvements. The bank expects AI systems to increase electricity demand. Morgan Stanley rates Cipher, Hut 8, Riot, TeraWulf, and Galaxy as Overweight, Applied Digital as Equal-weight, and MARA as Underweight.

Wells Fargo initiated coverage of Applied Digital (APLD) with an Overweight rating and $50 price target, citing $36B in contracted leases. The stock rose post-call. Analyst Eric Luebchow values existing leases at $30/share, noting Meta and Oracle as major tenants. Concerns include build costs, tenant concentration, and delivery timelines.

Applied Digital Corporation (APLD) co-founder Jason Zhang disposed of 49,188 shares worth $1.3M to meet tax obligations from RSU vesting, per an SEC filing. He retains 2.5M shares valued at $62.41M. The company operates in AI and high-performance computing infrastructure.