Applied Digital Returns 221% in 2025, Target Rises to $56 on 900MW Hyperscaler Talks
Applied Digital returned 221% in 2025 and surged 41% through January 2026. Northland raised its price target to $56 from $40 after management revealed advanced negotiations with an investment-grade hyperscaler for three sites totaling 900 MW capacity.
1. Strong Stock Performance
Applied Digital returned 221% in 2025 and has surged another 41% through January 2026, driven by growing demand for data center capacity in AI and high-performance computing markets.
2. Northland Upgrades Price Target
Northland analyst Mike Grondahl raised the firm’s price target for Applied Digital to $56 from $40 and assigned an Outperform rating following management’s positive expansion commentary.
3. Hyperscaler Expansion Negotiations
Management revealed the company is in advanced negotiations with a new investment-grade hyperscaler for three potential sites representing a combined 900 MW of data center capacity.
4. Broader Growth Outlook
Additional analyst commentary highlights Applied Digital’s waterless cooling system, rapid deployment capabilities and a land and power portfolio of up to 4.3 GW that may secure future lease agreements.