Can Applied Digital's Polaris Forge2 Drive the Next Leg of Growth?

Applied Digital APLD is advancing its strategic expansion with Polaris Forge 2, a second large-scale N.D. campus aimed at capturing the accelerating demand for AI-focused data center infrastructure. The project is launching with an initial 300 megawatts of IT load and is designed with a clear pathway to scale toward 1 gigawatt as additional power resources become available on the regional grid. Building on the momentum of Polaris Forge 1, which secured full lease commitments at 400 megawatts and approximately $11 billion in long-term contracted revenues, the second campus reinforces Applied Digital’s ability to replicate its development model in a market characterised by strong hyperscale demand. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $280.9 million, up 30.39% year over year, reflecting expectations around incremental capacity coming closer to commercial deployment.Polaris Forge 2 is entering development during a favorable industry cycle in which demand for liquid-cooled, high-density AI infrastructure continues to exceed available supply. Power-ready sites supported by proven construction execution remain limited across the sector, creating a competitive advantage for developers capable of delivering large-scale capacity on defined timelines while meeting advanced technical requirements. The campus is purpose-built to address these constraints, aligning Applied Digital with hyperscalers seeking sizable AI deployments.With initial funding secured through Macquarie Equipment Capital, Polaris Forge 2 is positioned to extend the revenue framework established at the Ellendale campus. Its ability to scale toward a full gigawatt and its alignment with customer requirements for purpose-built AI infrastructure suggest the project could play a central role in supporting Applied Digital’s next phase of growth as it advances toward commercial operation.APLD Faces Stiff CompetitionApplied Digital operates in a market where both emerging and established providers are expanding capacity to support AI workloads. Among its peers, Riot Platforms RIOT is moving beyond its crypto-focused base. With its planned high-performance computing facilities, Riot Platforms aims to exceed one gigawatt of future capacity as demand evolves. Equinix EQIX also remains one of the sector’s largest operators, with Equinix running a global network of more than 260 data centers and expanding its xScale portfolio for hyperscale customers requiring power-dense environments. While Riot Platforms and Equinix benefit from broader scale and mature customer ecosystems, APLD’s focus on purpose-built, liquid-cooled infrastructure and its rapid development approach at sites like Polaris Forge 2 offers a differentiated path.APLD’s Share Price Performance, Valuation & EstimatesApplied Digital shares have skyrocketed 182.1% in the past six months, outperforming the broader Zacks Finance sector’s return of 10.1% and the Zacks Financial-Miscellaneous Services industry’s decline of 4.2%.APLD Stock’s PerformanceImage Source: Zacks Investment ResearchApplied Digital stock is overvalued, with a forward 12-month price/sales of 18.24X compared with the broader sector’s 9.08X. APLD has a Value Score of F.APLD’s ValuationImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for fiscal 2026 loss is pegged at 31 cents per share, unchanged over the past 30 days. Applied Digital reported a loss of 80 cents per share in the previous year.Applied Digital Corporation Price and Consensus Applied Digital Corporation price-consensus-chart | Applied Digital Corporation QuoteAPLD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Equinix, Inc. (EQIX): Free Stock Analysis Report Riot Platforms, Inc. (RIOT): Free Stock Analysis Report Applied Digital Corporation (APLD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks