Positive. APLD stock surges 52% in June, with strong earnings and infrastructure expansion plans.

From Nasdaq: 2025-06-30 08:23:00

Applied Digital Corporation’s APLD shares have surged 52% in June, outperforming the Financial – Miscellaneous Services industry. Recent agreements with CoreWeave are expected to generate $7 billion in revenue, solidifying APLD’s position in AI infrastructure. Microsoft and Meta Platforms also reported strong earnings, signaling increasing demand for hyperscale and AI workloads.

Despite a loss of 16 cents per share in Q3, APLD anticipates improved sales and earnings in Q4. The company’s expansion plans, including new facilities and lease agreements, look promising. A recent $150 million equity facility will support infrastructure expansion and provide necessary liquidity for growth and data center buildout.

Challenges include rising costs and transitional issues impacting near-term profitability. Depreciation expenses are expected to remain high due to ongoing infrastructure investments. APLD’s valuation is currently trading at a premium compared to the industry, indicating potential risks for investors. However, the company remains strategically positioned for long-term growth in the AI and HPC infrastructure market.

Zacks Investment Research highlights a top semiconductor stock with strong earnings growth and a growing customer base. The company is positioned to meet the rising demand for AI, machine learning, and IoT technologies, with global semiconductor manufacturing projected to reach $803 billion by 2028. Investors can access more information on Zacks’ recommendations and stock analysis reports.



Read more at Nasdaq: APLD Stock Significantly Beats Industry So Far in June: Is It a Buy?