Applied Digital Corp. (NASDAQ:APLD) shares rose on Wednesday after the company announced the pricing of a $2.15 billion senior secured notes offering to fund its Polaris Forge 2 project.
APLD ComputeCo 2 LLC, a subsidiary, priced 6.750% senior secured notes due 2031 at 98% of face value.
Proceeds will support the development and construction of 200 megawatts of critical IT capacity at the Polaris Forge 2 campus in Harwood, North Dakota.
The company expects to close the offering by March 10, 2026, subject to customary conditions. The notes are secured by first-priority liens on most assets of APLD Compute 2 and its subsidiaries.
Power Infrastructure Deal
In a separate announcement, Babcock & Wilcox Enterprises Inc. (NYSE:BW) said it has received full notice to proceed on a $2.4 billion power generation project for Base Electron, an independent power producer backed by Applied Digital. The project will deliver 1.2 gigawatts of new generation capacity intended to supply electricity to Applied Digital's AI Factory campuses.
Technical Analysis
The stock is currently trading 12.5% below its 20-day simple moving average (SMA) and 15.3% below its 100-day SMA, indicating some short-term weakness. Over the past 12 months, shares have surged and now trade closer to their 52-week high than their low.
The RSI stands at 50.00, placing the stock in neutral territory and suggesting it is neither overbought nor oversold. However, the MACD is at 0.10, below its signal line at 0.15, indicating continued bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $30.00
- Key Support: $25.00
Earnings & Analyst Outlook
Applied Digital is expected to announce its next earnings report on April 13, 2026.
- EPS Estimate: Loss of 15 cents (Down from Loss of 8 cents)
- Revenue Estimate: $77.11 million (Up from $52.92 million)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $30.80. Recent analyst moves include:
- B. Riley Securities: Buy (Raises Target to $53.00) (Jan. 9)
- Roth Capital: Buy (Raises Target to $58.00) (Jan. 8)
- Needham: Buy (Maintains Target to $41.00) (Jan. 8)
APLD Price Action: Applied Digital shares were up 8.80% at $28.45 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo by PJ McDonnell via Shutterstock
