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Applied Digital (APLD) is up over 587% in the past six months and is accelerating even more. The company was mostly involved with crypto mining in the past, but has pivoted to AI, which has been very fruitful. The company has received several big-name contracts, with the CoreWeave (CRWV) deal being expanded again today.

In parallel, Applied Digital announced solid Q1 FY 2026 results, with revenue surging 84% year-over-year to $64.2 million. Adjusted loss was just 3 cents per share. Analysts expected a loss of 13 cents per share and $50 million in revenue.

Applied Digital announced that it secured full capacity for its Polaris Forge 1 data center. Plus, the CoreWeave deal is being expanded by 150 MW. Prospective lease revenue is now at $11 billion, with the Polaris Forge 1 potentially expanding to 1 GW between 2028 and 2030.

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How high can APLD stock go?

APLD soared beyond $39 back in 2004 before retreating to $34.6 as of this writing. The next leg up could take it beyond $50 by the end of this year.

Applied Digital’s massive beat on the top and bottom lines are likely to carry on momentum to the following quarters, and this can lead to a sustained rally if the company lands more contracts from cloud computing companies.

The company has a target of achieving a $1 billion net operating income run rate within five years. At this rate, even that may come earlier than scheduled.

As such, APLD stock is worth having more exposure to. The stock could double or more in 12 months if management can keep executing.

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