Key Facts on Applied Digital
Applied Digital, a company that specializes in designing and building dedicated AI data centers, has seen a revenue backlog surge of 284%, reaching $99.4 billion as of the last quarter. The firm has contracted 90% of its current 1 gigawatt (GW) data center capacity through long-term leases, particularly with key customer CoreWeave, which is projected to generate $11 billion in lease revenue over 15 years.
Applied Digital’s lease revenue pipeline now stands at $23 billion following the recent signing of a 15-year contract for 300 megawatts (MW) with a major hyperscaler. The company’s ability to expand its active capacity from 1 GW to 3.5 GW further positions it for long-term growth as the AI market is anticipated to grow by 25 times from 2023 to 2033, potentially generating annual revenues of $4.8 trillion.
Despite trading at an expensive valuation of 27 times sales and a notable 436% increase in stock value over the past year, analysts predict Applied Digital’s growth will continue, making it an attractive option in the burgeoning AI infrastructure sector.
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