Roth Capital and Citizens Stay Bullish on Applied Digital Corporation (APLD)

Applied Digital Corporation (NASDAQ:APLD) is one of the 15 AI Stocks With Explosive Growth Potential.

Applied Digital Corporation (NASDAQ:APLD) is one of the best AI stocks with explosive growth potential. On February 18, Roth Capital reiterated its Buy rating on Applied Digital Corporation (NASDAQ:APLD) with a price target of $58. The research firm said it is “buying shares” after the stock fell in after-hours trading following news that NVIDIA Corporation (NASDAQ:NVDA) is selling its stake in Applied Digital Corporation (NASDAQ:APLD).

Roth Capital’s analyst said many things have changed since the earlier NVIDIA-led financing. The company has signed 2 colocation leases, one with CoreWeave, Inc. (NASDAQ:CRWV) and another with a hyperscaler, with a third lease expected to come soon. According to Roth Capital, the recent stock drop is driven more by “headline risk than any fundamental change” in the company’s investment story.

Earlier, on February 12, Citizens also reiterated its Market Outperform rating on Applied Digital Corporation (NASDAQ:APLD) with a $40 price target. The research firm pointed to its 400 megawatts (MW) of purpose-built capacity at its Polaris Forge 1 Campus, which is fully leased to CoreWeave, Inc. (NASDAQ:CRWV). The first 100MW became ready for service in November 2025. Another 150MW is scheduled to be ready by mid-2026, and the remaining 150MW is expected to come online in 2027.

Citizens also pointed out that Applied Digital Corporation (NASDAQ:APLD) has signed a 200MW lease with an investment-grade hyperscaler. This agreement includes an option for an additional 800MW, which could allow the company to reach a total deployment of 1 gigawatt (GW).

The research firm noted that the company has a 4.3GW active development pipeline, which makes it one of the largest high-performance computing (HPC) and artificial intelligence (AI) infrastructure providers in North America.

Applied Digital Corporation (NASDAQ:APLD) is a technology company that designs, develops, and operates digital infrastructure for the high-performance computing (HPC) and artificial intelligence (AI) industries.

While we acknowledge the potential of APLD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.