TLDR
- Applied Digital stock jumped 19% after announcing three 15-year CoreWeave leases worth $11 billion in expected revenue
- Company secured $50 million debt financing from Macquarie Equipment Capital to fund expansion plans
- Polaris Forge 1 campus in North Dakota will provide 400MW capacity with first 100MW facility starting Q4 2025
- Construction began on second AI factory Polaris Forge 2 with $3 billion investment and 200MW initial capacity
- Stock has gained 220% year-to-date as company pivots from crypto mining to AI infrastructure
Applied Digital Corp stock soared 19% on Monday after the company revealed major developments in its artificial intelligence infrastructure business. The gains came after CEO Wes Cummins outlined the company’s expansion plans in a September 12 letter to shareholders.
The stock surge followed news of three 15-year lease agreements with hyperscaler CoreWeave. These contracts are expected to generate approximately $11 billion in lease revenue over their duration. The deals cover 400 megawatts of capacity at Applied Digital’s Polaris Forge 1 campus in Ellendale, North Dakota.
Applied Digital also completed a $50 million debt financing arrangement with Macquarie Equipment Capital Inc. The funding will support the company’s expansion plans as it transitions from cryptocurrency-focused data centers to what it calls “AI Factories.”
#NEWS: Applied Digital adds another 150MW lease with @CoreWeave at Polaris Forge 1!
This expansion brings our total capacity to 400MW with $11B in contracted revenue. The campus is engineered to scale up to 1 gigawatt and represents a major step in building America’s AI… pic.twitter.com/0mXMuqj4xl
— Applied Digital (@APLDdigital) August 29, 2025
The Polaris Forge 1 facility represents a massive undertaking for the company. The campus is designed to eventually reach 1 gigawatt of total capacity. The first 100MW facility is scheduled to begin operations in the fourth quarter of 2025.
Construction is underway on additional capacity at the site. An extra 150MW facility is currently being built and should be functional by mid-2026. A third 150MW facility is in the planning stages with a target completion date of mid-2027.
Second Campus Under Development
Applied Digital has broken ground on a second AI factory called Polaris Forge 2. This facility is located near Harwood, North Dakota and represents a $3 billion investment. The campus will initially deliver 200MW of critical IT load with room for future expansion.
The company plans to begin operations at Polaris Forge 2 in 2026. Full capacity is targeted for 2027. Cummins stated that Applied Digital is in advanced discussions with an investment-grade hyperscaler for this project.
The CoreWeave partnership has become central to Applied Digital’s business model. The expanded lease agreement raises total contracted capacity to 400MW. This arrangement secures roughly $11 billion in anticipated lease revenue for the company.
Market Response and Investor Sentiment
Applied Digital was the top trending equity ticker on the Stocktwits platform on Monday afternoon. Retail sentiment around the stock improved to “extremely bullish” from “bullish” territory. Message volume levels reached “high” status on the platform.
The stock has performed exceptionally well this year. Applied Digital shares have gained 220% year-to-date. Over the past 12 months, the stock has climbed more than 264%.
Stocktwits users expressed optimism about future announcements. Some investors are anticipating news about additional hyperscaler partnerships. Others believe the stock could reach $40 or higher when new partnerships are announced.
The company’s pivot from cryptocurrency mining to AI infrastructure has driven much of the recent interest. Applied Digital is positioning itself to capitalize on growing demand for AI computing capacity. The long-term nature of the CoreWeave contracts provides revenue predictability.
Financial Projections and Risks
Applied Digital’s business narrative projects $755.7 million in revenue by 2028. The company would need to achieve 73.7% yearly revenue growth to meet this target. Earnings are projected to reach $102.2 million by 2028, requiring a $263.2 million improvement from current losses of $161.0 million.
Community fair value estimates for Applied Digital stock range from $2.11 to $24 per share. The wide range reflects differing opinions on the company’s growth prospects and revenue reliability.
Customer concentration remains a key risk factor for investors. The company’s heavy reliance on CoreWeave and other large customers creates potential vulnerability. Any reduction in commitments from key clients could impact cash flows.
Applied Digital completed the $50 million debt financing with Macquarie Equipment Capital in September 2025 to support its expansion plans into AI infrastructure.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
