Investing.com – Craig-Hallum has raised its price target on Applied Blockchain Inc (NASDAQ:APLD) to $40.00 from $39.00 while maintaining a Buy rating. The new target represents potential upside from the current price of $32.75, as APLD has already delivered an impressive 239.57% return over the past year.InvestingPro data shows analyst targets for APLD range from $36 to $58, with a strong consensus recommendation of 1.18, indicating bullish sentiment despite the stock’s current overvaluation according to InvestingPro’s Fair Value model.
The firm highlighted two key developments from Applied Blockchain’s recent earnings call. First, the company is in advanced discussions on three sites totaling 900MW of opportunity, with each campus potentially growing to a GW. Combined with existing Forge 1 and Forge 2 campuses, this could provide 5GW of growth capacity over several years. This expansion aligns with APLD’s strong revenue growth trajectory, which reached 68.35% in the last twelve months.
Craig-Hallum noted that Applied Blockchain management indicated demand is not limiting growth, but rather the company’s ability to scale rapidly across multiple campuses while delivering on time and on budget. The company has also been working toward a 5-year goal of $1B in NOI, which it now believes it can exceed. Despite this ambitious outlook, InvestingPro data reveals APLD is not currently profitable, with a diluted EPS of -$0.44 in the last twelve months and analysts forecasting continued losses in the current fiscal year.
The analyst highlighted Applied Blockchain’s technology investments, including a partnership with Babcock & Wilcox (NASDAQ:BW) and a $15M investment in Corintis, a private company developing liquid chip-cooling technology for AI applications.
Craig-Hallum also noted Applied Blockchain’s plan to merge its GPUaaS segment into EKSO to form a new company called ChronoScale, with the transaction expected to close in Q2 2026. Applied Blockchain will maintain over 80% ownership while hosting the GPUs, with results to be consolidated after closing.With a market capitalization of $8.44 billion, APLD is currently trading at high valuation multiples despite its volatility and profitability challenges. Discover more insights with InvestingPro, which offers 15+ additional ProTips and a comprehensive Pro Research Report on APLD, one of 1,400+ US equities covered in-depth on the platform.
In other recent news, Applied Digital Corp reported its second-quarter fiscal year 2026 earnings, revealing a notable revenue performance that exceeded Wall Street expectations. The company achieved revenues of $126.6 million, surpassing the forecasted $86.67 million by a significant margin, resulting in a 46.07% revenue surprise. Despite a negative earnings per share (EPS) forecast of -$0.12, the strong revenue figures were a positive highlight for investors. Additionally, Applied Digital is reportedly in “advanced negotiations” with another hyperscaler for potential leasing arrangements, indicating ongoing strategic developments.
In terms of analyst perspectives, Citizens has reiterated its Market Outperform rating for Applied Digital, maintaining a price target of $40.00. The research firm noted that the company’s recent results were in line with expectations and reflected previously discussed activities. These developments underscore the company’s ongoing efforts to strengthen its market position.
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