Applied Digital Lands $31B AI Data-Center Deal, Price Target Raised to $75
APLD•Applied Digital secured a 15-year take-or-pay lease expanding its contracted baseline revenue to $31 billion, rising to $73 billion if all renewal options are exercised. In 2024 it completed a $160 million private placement with investors including Nvidia, and Craig-Hallum boosted its price target to $75.
1. Major 15-Year Take-or-Pay Lease
Applied Digital announced a new 15-year take-or-pay lease that brings its contracted baseline revenue to $31 billion. If all renewal options are exercised, total revenue commitments would climb to $73 billion, securing long-term cash flows and capacity for AI-focused data centers.
2. Nvidia Partnership via $160M Private Placement
In 2024 Applied Digital closed a $160 million private placement backed by Nvidia and Related Companies. This strategic investment underscores Nvidia’s confidence in Applied Digital’s digital infrastructure for high-performance computing and strengthens the companies’ collaboration on AI factory development.
3. Analyst Upgrade and Price Target Increase
Craig-Hallum analyst George Sutton maintained a Buy rating on Applied Digital and raised the price target from prior levels to $75, implying about 68% upside. The upgrade reflects growing enthusiasm for Applied Digital’s revenue backlog and its role in powering hyperscaler AI deployments.
