Applied Digital Corporation (APLD): A Bull Case Theory

We came across a bullish thesis on Applied Digital Corporation (APLD) on the subreddit wallstreetbets by RoloBoat. In this article, we will summarize the bulls’ thesis on APLD. Applied Digital Corporation (APLD)'s share was trading at $12.05 as of 11^th June.

Applied Digital (APLD) is emerging as a critical infrastructure player in the AI revolution through its dual focus on high-performance computing (HPC) data centers and GPU-as-a-service offerings. Originally rooted in crypto mining, the company’s expertise in siting power-intensive operations in low-cost, energy-rich locations like North Dakota positioned it perfectly to capitalize on AI’s insatiable demand for compute and power.

Its flagship 400MW Ellendale campus has already secured 250MW in 15-year leases with CoreWeave, translating to an estimated $7 billion in total revenue and potentially $233–$280 million in annual NOI. At a 5–6% cap rate, this implies a valuation of $3.9–$5.6 billion for the contracted portion alone, with upside to $9.6 billion if the full 400MW is leased. APLD is also marketing a 1.4GW pipeline, representing an even larger opportunity.

On a per-share basis, the CoreWeave deal alone could be worth $15–$23, with every additional 100MW translating to roughly $5 in equity value. Meanwhile, the Applied Digital Cloud segment, though currently under the radar, is a promising wildcard. It leases NVDA GPUs under low-risk, prepaid contracts and could evolve into a mini-CoreWeave, particularly given NVDA’s strategic interest in supporting ecosystem players outside hyperscaler control. Even assigning it a fraction of CoreWeave’s valuation yields multi-billion-dollar optionality.

With strong partnerships, anchor clients, and long-term visibility, APLD is uniquely positioned as the only public pure-play on next-gen data center infrastructure. The stock remains deeply undervalued, and with asymmetric upside, investors may be looking at a gold mine born out of a crypto detour.

Previously, we highlighted a bullish thesis on Applied Digital (APLD) by DoU92, emphasizing its scalable AI-focused data centers and undervalued position in the high-performance computing space. The stock price since the coverage has appreciated by roughly 26.5%. RoloBoat builds on this by quantifying the CoreWeave contract’s multibillion-dollar impact and highlighting GPU-leasing optionality via Applied Digital Cloud. Both see APLD as a mispriced AI infrastructure enabler with transformative upside.

Applied Digital Corporation (APLD) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held APLD at the end of the first quarter which was 42 in the previous quarter. While we acknowledge the risk and potential of APLD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than APLD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.