Stock Analysis | How Is Applied Digital ($APLD) Stock Performance in 2026?

1. Applied Digital (APLD) shares surged ~220% in 2025, driven by its role in the AI infrastructure buildout, particularly addressing the power and thermal demands of AI systems.2. APLD's business model focuses on designing and operating custom data centers for AI clients with high-density computing needs, functioning as a tech REIT and specialized operator.3. Major contracts, including $11 billion with CoreWeave and $5 billion with an undisclosed client, underpin APLD's growth, with a total pipeline of 4 GW.4. The company secured significant financing, including up to $5 billion from Macquarie Asset Management, $160 million from Nvidia, and $2.35 billion in senior secured notes, totaling a $16 billion backlog.5. While APLD achieved significant revenue growth (250% YoY to $126.6 million in FY2026 Q2) and positive adjusted EBITDA ($20.20 million), its current valuation (P/S ratio ~30) and ~15% gross margin are high relative to its operational model, posing financing and execution risks.▶️ Download our app here:📌 Play Store: ⁠https://play.google.com/store/apps/details?id=com.tradingkey.mobile&hl=en⁠📌 App Store: ⁠https://apps.apple.com/us/app/tradingkey-stock-analysis/id6744304666📢 DISCLAIMERTradingKey provides general information on certain investment products. This information is not intended to constitute financial advice or a recommendation for any specific investment product.