Applied Digital Secures $58, $40 Price Targets with Leases and 4.3 GW Pipeline
Roth Capital reiterated its Buy rating on Applied Digital with a $58 price target after NVIDIA sold its stake, noting two signed colocation leases and a third expected soon. Citizens upheld a Market Outperform rating with a $40 target, highlighting 400 MW leased at Polaris Forge 1 and a 4.3 GW development pipeline.
1. Roth Capital Buy Rating and Price Target
On February 18, Roth Capital reiterated a Buy rating on Applied Digital with a $58 price target, stating that the post-market decline following NVIDIA’s stake sale reflects headline risk rather than fundamental change. The firm noted two executed colocation leases—one with CoreWeave and one with a hyperscaler—and expects to finalize a third lease soon.
2. Citizens Market Outperform Rating and Polaris Forge Capacity
On February 12, Citizens reaffirmed a Market Outperform rating with a $40 price target, emphasizing Applied Digital’s 400 MW purpose-built capacity at Polaris Forge 1 fully leased to CoreWeave. The first 100 MW became operational in November 2025, 150 MW is scheduled by mid-2026, and the remaining 150 MW is expected in 2027.
3. Hyperscaler Agreement and 4.3 GW Development Pipeline
Citizens highlighted a 200 MW lease signed with an investment-grade hyperscaler that includes an option for an additional 800 MW, potentially reaching 1 GW. The company’s active pipeline spans 4.3 GW, ranking it among North America’s largest high-performance computing and AI infrastructure providers.