Applied Digital (APLD) Stock Could Be 11.8% Undervalued After $5.2b AI Lease

Simply Wall St.06-21

The trigger for Applied Digital (APLD) stock is a new 15-year take-or-pay lease at its Delta Forge 2 AI campus, valued at about US$5.2b in base contracted revenue with renewal options. See our latest ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2645609778?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/3072000-choice2-main-header/1585186655182","is_english":true,"pubTime":"2026-06-21 18:25","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2645609778","market":"hk","top_or_hot":-1,"title":"Applied Digital (APLD) Stock Could Be 11.8% Undervalued After $5.2b AI Lease","media":"Simply Wall St.","content":"<div>\n<p>The trigger for Applied Digital (APLD) stock is a new 15-year take-or-pay lease at its Delta Forge 2 AI campus, valued at about US$5.2b in base contracted revenue with renewal options. See our latest ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-apld/applied-digital/news/applied-digital-apld-stock-could-be-118-undervalued-after-52\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Applied Digital (APLD) Stock Could Be 11.8% Undervalued After $5.2b AI Lease</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApplied Digital (APLD) Stock Could Be 11.8% Undervalued After $5.2b AI Lease\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-06-21 18:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/software/nasdaq-apld/applied-digital/news/applied-digital-apld-stock-could-be-118-undervalued-after-52><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The trigger for Applied Digital (APLD) stock is a new 15-year take-or-pay lease at its Delta Forge 2 AI campus, valued at about US$5.2b in base contracted revenue with renewal options. See our latest ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-apld/applied-digital/news/applied-digital-apld-stock-could-be-118-undervalued-after-52\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4608","symbol_name":"AI应用概念股","start_time":0,"source_url":"https://simplywall.st/stocks/us/software/nasdaq-apld/applied-digital/news/applied-digital-apld-stock-could-be-118-undervalued-after-52","article_id":"2645609778","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3072000-choice2-main-header/1585186655182"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/software/nasdaq-apld/applied-digital/news/applied-digital-apld-stock-could-be-118-undervalued-after-52","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2645609778","pubTimestamp":1782037541,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"The trigger for Applied Digital (APLD) stock is a new 15-year take-or-pay lease at its Delta Forge 2 AI campus, valued at about US$5.2b in base contracted revenue with renewal options.\nSee our latest analysis for Applied Digital.\nThe new lease and recent US$350m credit facility come as Applied Digital’s share price has moved sharply, with a 90-day share price return of 70.91% and a 1-year total shareholder return above 300%, suggesting strong momentum tied to its AI infrastructure build...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4608":"AI应用概念股","BK4116":"互联网服务与基础架构","BK4023":"应用软件","APLZ":"Tradr 2X Short APLD Daily ETF","APLD":"APPLIED DIGITAL CORP","BK4609":"英伟达持仓股","APLX":"2倍做多APLD ETF-Tradr"},"translate_title":"$5.2 B AI租赁后，Applied Digital(APLD)股票可能被低估11.8%","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"APLX":0.6,"APLD":1.97,"APLZ":0.6},"content_text":"The trigger for Applied Digital (APLD) stock is a new 15-year take-or-pay lease at its Delta Forge 2 AI campus, valued at about US$5.2b in base contracted revenue with renewal options. See our latest analysis for Applied Digital. The new lease and recent US$350m credit facility come as Applied Digital’s share price has moved sharply, with a 90-day share price return of 70.91% and a 1-year total shareholder return above 300%, suggesting strong momentum tied to its AI infrastructure build out. If this kind of AI infrastructure story interests you, it could be worth scanning other data center and compute-focused opportunities using our 49 AI infrastructure stocks After such a strong run, Applied Digital’s recent share price and rich pipeline of contracted AI lease revenue raise a key question for investors: is the stock still pricing in too little, or is the market already baking in the next leg of growth? AdvertisementMost Popular Narrative: 11.8% Undervalued Applied Digital’s most followed narrative points to a fair value of $52.80 versus the last close of $46.59, so the focus falls squarely on how long-term AI contracts and power access might support that gap.  The company has recently secured long-term (15-year) leasing agreements with CoreWeave, a major AI hyperscaler, for its purpose-built AI/HPC data center campus, Polaris Forge 1, representing a total of $7 billion in contracted revenue and a multi-year, recurring, and predictable revenue stream that directly supports future revenue growth and cash flow stability.  Read the complete narrative. Want to see what sits behind that projected fair value for Applied Digital? The narrative leans on rapid top line expansion, a sharp profitability swing, and a future earnings multiple that assumes investors will pay up for those outcomes. Result: Fair Value of $52.80 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Applied Digital story still hinges on a few pressure points, particularly heavy debt funding and reliance on a small group of large hyperscaler contracts that could change. Find out about the key risks to this Applied Digital narrative. Another View: Applying a Simple Multiple To Applied Digital While the most popular narrative for Applied Digital points to an 11.8% gap to fair value, the current P/S ratio of 41.7x paints a different picture. That is far above the US IT industry at 1.8x, the peer average at 8x, and even the fair ratio of 28.2x. This suggests the market could move toward a lower multiple over time. For investors, the tension is whether those AI contracts fully justify paying so far ahead of peers, or if sentiment is stretching the story too far. To pressure test whether this richer valuation still lines up with your own expectations for Applied Digital, it can help to walk through our detailed multiple based breakdown in the See what the numbers say about this price — find out in our valuation breakdown. NasdaqGS:APLD P/S Ratio as at Jun 2026Next Steps Given the mix of excitement and concern around Applied Digital, this is a moment to move quickly, review the underlying data, and decide where you stand using the 1 key reward and 4 important warning signs. Looking for more investment ideas beyond Applied Digital? If Applied Digital has caught your attention, do not stop there. Use the Simply Wall Street Screener to uncover more stocks that fit your approach and time horizon.  Spot potential value opportunities early by reviewing companies highlighted in the screener containing 19 high quality undiscovered gems. Strengthen your focus on quality by scanning financially robust companies using the solid balance sheet and fundamentals stocks screener (48 results). Prioritize resilience and capital protection by filtering for stocks screened as 65 resilient stocks with low risk scores.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n        and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n        financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n        Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n        Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"shareholding","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.44.0","shortVersion":"4.44.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2645609778","isCrawlerRequest":true}