• Applied Digital is transitioning from development to revenue generation, focusing on AI infrastructure.
• Arete Research sets a price target of $99 for APLD, indicating a potential upside despite current market fluctuations.
• Projected revenue for 2026 is $281 million, with a year-over-year growth of nearly 27%, amidst a favorable industry environment.

Applied Digital (NASDAQ:APLD) is a company focused on developing AI infrastructure. It is currently transitioning from development to revenue generation. The company is making significant strides with the commencement of operations at Polaris Forge 1 and the construction of new AI campuses. These developments are crucial as APLD aims to capitalize on the growing demand for AI infrastructure.

On January 7, 2026, Arete Research set a price target of $99 for APLD, while the stock was priced at $30.26. The stock has shown some movement, with a slight increase of 0.20% from the previous session. It has fluctuated between $28.88 and $30.63 today, with a 52-week high of $40.20 and a low of $3.31.

APLD's revenue for 2026 is projected to reach $281 million, reflecting a year-over-year growth of nearly 27%, as highlighted by Zacks Consensus Estimate. This growth depends on the company's ability to convert its new AI campuses into revenue. The broader industry environment is favorable, with hyperscalers investing $350 billion annually in AI infrastructure.

Despite the positive outlook, the supply of GPU-ready data centers remains limited. APLD's success in meeting this demand will test its execution capabilities in the hyperscale data center market. The company's market capitalization is approximately $8.47 billion, with a trading volume of 30.07 million shares today.