Applied Digital Named One Of Wells Fargo Top Ideas — Analyst Highlights Backlog Quality, Power Advantage And Valuation Discount

Wells Fargo’s initiation puts fresh focus on Applied Digital’s expanding multi-campus data center portfolio and contracted growth pipeline.

• Wells Fargo called Applied Digital one of the firm’s top ideas and initiated coverage with an ‘Overweight’ rating.
• The analyst highlighted 1.4 GW of contracted capacity across five campuses in three states.
• APLD trades at a material discount to contracted net asset value, according to Wells Fargo.

Applied Digital Corp. (APLD) shares were in the spotlight on Thursday after Wells Fargo initiated coverage of the stock with an ‘Overweight’ rating and a $50 price target, calling the company one of the firm’s top ideas, according to TheFly.

The analyst highlighted Applied Digital’s investment-grade-concentrated backlog, power-advantaged footprint with lower relative regulatory risk, and what the firm sees as a material discount to contracted net asset value.

Wells Fargo also pointed to 1.4 gigawatts (GW) of contracted capacity with three tenants across five data center campuses in three states, per TheFly.

APLD shares traded nearly 7% higher at the time of writing on Thursday.

Applied Digital Has About $36B In Contracted Revenue

Applied Digital’s latest fiscal fourth-quarter results show the scale behind Wells Fargo’s capacity argument.

Applied Digital built its contracted portfolio from its first CoreWeave leases in May 2025 to approximately 1.4 GW across five campuses by June 2026, representing roughly $36 billion in base-term contracted lease revenue. 

The campuses are being built for two hyperscalers and CoreWeave Inc. (CRWV). The portfolio includes Polaris Forge 1, 2, and 3, as well as Delta Forge 1 and 2. The leases carry initial 15-year terms and are structured on a take-or-pay basis.

The company has also said approximately 70% of contracted revenue is backed by U.S.-based investment-grade hyperscalers, while its five-campus portfolio has about 2.15 GW of grid-connected utility power.

Wells Fargo Highlights Power Footprint And Valuation

Wells Fargo’s thesis also centers on Applied Digital’s position of power.

According to TheFly, the analyst highlighted Applied Digital’s power-advantaged footprint with lower relative regulatory risk and said the company trades at a material discount to contracted net asset value.

Retail Sentiment Around APLD Stock

Retail sentiment around APLD stock was ‘bullish’ on Stocktwits amid ‘high’ message volume.

So far this year, APLD stock has fallen more than 6%. In comparison, the Global X Data Center & Digital Infrastructure ETF (DTCR), which holds the stock, has risen more than 27% during this period.

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