Can Polaris Forge 2 Fuel the Next Leg of Growth for APLD Stock?

Applied Digital’s APLD hyperscale hosting business remains its core growth driver, supported by rising AI infrastructure demand and expanding commitments from leading hyperscalers. Building on this momentum, APLD is set to break ground in September 2025 on Polaris Forge 2, a $3 billion, 280-megawatt AI Factory near Harwood, ND. The project is scheduled to begin initial operations in 2026 and reach full capacity by early 2027, positioning Applied Digital to expand its role in powering next-generation AI workloads.

Polaris Forge 2 is expected to build on the success of Polaris Forge 1, where Applied Digital secured long-term leases with CoreWeave covering 400 MW and approximately $11 billion in contracted revenues. The new facility is designed for scalability and is already attracting interest from additional investment-grade hyperscalers. This pipeline of demand provides strong visibility into future growth and underscores Applied Digital’s ability to deliver infrastructure at scale.

In the fourth quarter of fiscal 2025, Applied Digital reported revenues of $38 million, up 41% year over year, reflecting strong capacity additions across its hosting portfolio. This momentum is expected to extend over time as new facilities come online and larger projects like the Polaris Forge 2 anchor the next leg of revenue acceleration, reinforcing APLD’s position as a leading provider of AI infrastructure.

APLD Faces Stiff Competition

Applied Digital faces competition from established data center operators such as Equinix EQIX and Digital Realty Trust DLR. Equinix has built a global interconnection platform with more than 260 data centers worldwide, giving it a scale advantage and a diversified enterprise customer base. Its strong presence in cloud on-ramps and colocation services positions Equinix’s strong presence in cloud on-ramps and colocation services positions it as a key alternative for hyperscalers and enterprises seeking reliable digital infrastructure.

Digital Realty Trust, meanwhile, continues expanding its footprint with hyperscale-focused developments across North America, Europe and Asia. Digital Realty Trust offers colocation, interconnection, and wholesale data center capacity under one platform, creating a broad value proposition for cloud providers and AI-driven tenants. With its established scale and diversified revenue streams, Digital Realty Trust remains a formidable competitor as Applied Digital advances Polaris Forge 2 and its hyperscale hosting strategy.

APLD’s Share Price Performance, Valuation and Estimates

Applied Digital’s shares have appreciated 106.4% year to date, while the broader Zacks Finance sector has jumped 11.4% and the Zacks  Financial - Miscellaneous Services industry has returned 10.3%.

APLD's YTD Performance

Applied Digital is trading at a premium, with a forward 12-month Price/Sales of 13.4X compared with the industry’s 3.36X. APLD has a Value Score of F.

APLD’s Valuation

The Zacks Consensus Estimate for Applied Digital’s first quarter fiscal 2026 loss is pegged at 6 cents per share, down by 3 cents over the past 30 days. The figure indicates a decline from the year-ago quarter’s reported loss of 3 cents per share.

Applied Digital Corporation Price and Consensus

Applied Digital Corporation price-consensus-chart | Applied Digital Corporation Quote

The consensus mark for fiscal 2026 loss is pegged at 21 cents per share, which has decreased by 12 cents over the past 30 days, suggesting 73.75% year-over-year improvement.

APLD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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