Applied Digital disclosed $1+ billion in new long-term customer contracts as demand for independent GPU cloud capacity surged.

Applied Digital Corp (NASDAQ:APLD) has declined approximately 31% over the past month, though it rebounded briefly in mid-June before resuming its downward trend. Despite the recent selloff, Wall Street analysts remain optimistic about the company's long-term prospects.

On July 2, Craig-Hallum analyst George Sutton reiterated a Buy rating on the shares. Among the 14 Wall Street analysts covering the stock, the median price target stands at $74.50, suggesting an additional 125% upside from current levels.

Several analysts raised their price targets on Applied Digital during June, including Northland Securities, Lucid Capital, Lake Street, and Needham. On June 9, John Todaro from Needham raised the firm's price target from $66 to $83 while maintaining a Buy rating, following Applied Digital's announcement of a long-term lease agreement for its Delta Forge 2 AI-focused data center.

In his note to clients, Todaro commented: "We raise our PT as we believe APLD can continue to source new sites for the pipeline and execute additional leases. Further, we expect pricing improvements from here as the company looks to slate in new IG hyperscalers and neo-cloud customers."

Applied Digital Corp builds and operates digital infrastructure for AI and computing companies across North America, providing data centers and GPU computing solutions for businesses working in AI. Headquartered in Dallas, Texas, the company was founded in 2021 by Wes Cummins and Jason Zhang.