Applied Digital (APLD) Stock Jumps 11% After Landing Its Third Billion-Dollar Hyperscaler Deal

TLDR

• Applied Digital stock jumped over 11% in pre-market trading on Tuesday
• The company secured its third 15-year lease with the same unnamed U.S.-based hyperscaler
• The deal covers 210 MW of critical IT load at the Delta Forge 2 campus, with base-term value of $5.2 billion
• Total contracted lease revenue now stands at $36 billion, rising to $86 billion if all options are exercised
• Needham raised its price target on APLD to $83, while Compass Point lifted its target to $70

Applied Digital landed its third major lease with the same unnamed U.S.-based hyperscaler, sending APLD stock up more than 11% in Tuesday’s pre-market session, trading around $45.69.

Applied Digital Corporation, APLD

The deal is for 210 megawatts of critical IT load at Delta Forge 2, the company’s fifth AI Factory campus, located in an undisclosed southern state. The base-term contract value is $5.2 billion over 15 years, with the potential to reach $12.7 billion if renewal options are exercised over a 30-year period.

Initial operations at Delta Forge 2 are expected to begin in the first quarter of 2028.

The lease is structured as a take-or-pay agreement, meaning the client is obligated to pay a minimum of $5.2 billion regardless. That kind of structure gives Applied Digital a solid revenue floor.

This is the third lease signed since April 2026, arriving just 18 days after the Polaris Forge 3 deal was inked. The hyperscaler involved is the same client behind the Delta Forge 1 and PF-3 agreements.

Applied Digital now has $36 billion in total contracted base-term lease revenue, climbing to $86 billion if all options are taken up. About 70% of that contracted revenue is backed by U.S.-based investment-grade hyperscalers.

The company also has approximately 1.4 gigawatts of critical IT load in its pipeline for 2028 and 2029, with 2.15 gigawatts of grid-connected utility power across its five campuses.

Analyst Reactions

Wall Street responded quickly. Needham raised its price target from $66 to $83 while keeping a Buy rating. Compass Point lifted its target from $45 to $70, also maintaining a Buy. Citizens reiterated a Market Outperform rating with a $60 target.

The average analyst price target now sits at $65.83, implying roughly 61% upside from recent levels. APLD carries a Strong Buy consensus, backed by 10 Buy ratings issued over the past three months.

The stock has returned 214% over the past year and currently holds a market cap of around $11.7 billion.

Recent Capital Activity

The lease news follows a busy stretch for Applied Digital. The company closed a $350 million revolving credit facility arranged by Goldman Sachs and secured up to $550 million in new capital in recent days.

Applied Digital also spun off its cloud business last month as an independent public company called ChronoScale (CHRN).

The company currently has $2.06 billion in contracted net operating income. Revenue surged 66% in the last twelve months to $319 million, though the company remains unprofitable and is burning through cash.

Needham noted it expects pricing to improve as Applied Digital adds new hyperscaler and neo-cloud customers going forward.

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