Applied Digital (APLD) stock has surged 130% in three months, hitting a 52-week high of $16.92 on Aug. 18. The company’s exposure to high-performance computing (HPC) and artificial intelligence (AI) has contributed to its 280% increase over the past year.

Applied Digital has expanded beyond crypto mining to provide next-generation data center infrastructure in North America. It is now focusing on HPC and AI infrastructure, with plans for a massive AI Factory in North Dakota. The company’s Polaris Forge campus aims to meet the demands of next-generation AI applications.

An announcement about Polaris Forge 2, a $3 billion, 280 MW AI Factory, has boosted APLD stock by 16%. Additionally, a 15-year lease agreement with CoreWeave for 250 MW of IT load at the Ellendale campus is projected to generate $7 billion in revenue, strengthening Applied Digital’s position in AI and HPC infrastructure.

With AI adoption rising, Applied Digital is well-positioned to meet the demand for purpose-built data centers. Analysts are optimistic about APLD stock, with a price target of $24, reflecting a 54% upside. The company’s partnerships with hyperscale customers and its multi-gigawatt pipeline are driving growth.

Management anticipates a revenue surge in August 2025 with the completion of its first Polaris Forge 1 building. The company’s track record in design and construction, combined with its development pipeline, positions it to meet the demand from hyperscalers. Applied Digital aims to generate $1 billion in annual net operating income within the next three to five years.

Wall Street maintains a “Strong Buy” consensus on APLD, citing its development pipeline, long-term contracts, and growing demand from AI-driven workloads. The company’s revenue growth rate is expected to push the stock towards $24 and beyond.

Read more at Yahoo Finance: Here’s Why Analysts See More Upside in APLD Stock