Overview
- Insider Monkey reports that on Oct. 22, Applied Digital finalized a $5 billion, 15-year lease with a U.S.-based hyperscaler for 200 MW at Polaris Forge 2.
- The reported deal would lift combined leased capacity across Polaris Forge 1 and 2 to about 600 MW, and shares rose roughly 4% in premarket trading on the news.
- On Oct. 2, Compass Point raised its price target to $30 and reiterated a Buy rating, citing full leasing at Forge 1 and prospects for a hyperscaler lease at Forge 2.
- Applied Digital has previously signed roughly $11 billion in 15-year agreements with CoreWeave to provide hundreds of megawatts of capacity.
- Despite strong contract momentum and a 326% year-to-date stock surge as of Oct. 21, Yahoo Finance notes the company is unprofitable, carries significant debt, and trades near 45 times sales.