Up 955%, Is Applied Digital Just Hitting Its Stride?[Stocks](https://moneymorning.com/category/article/stocks/) # Up 955%, Is Applied Digital Just Hitting Its Stride?  by Rich Duprey  February 9, 2026  Share it: **Applied Digital**( [APLD](https://moneymorning.com/stocks/apld/)) has staged an extraordinary comeback, rocketing nearly 955% from its 52-week low of about $3.31 per share to recent closes around $35 per share. On Friday, shares surged 25% after the company announced a $50 million senior secured promissory note to acquire land and kick off early construction on its Polaris Forge 2 AI data center project. Just months ago, APLD was cratering with the broader AI sector as investors [fretted over escalating debt levels](https://moneymorning.com/2025/11/19/irens-power-moat-shines-as-u-s-grid-faces-multi-year-ai-energy-crunch/). Yet successive financings – including up to $100 million from **Macquarie Group** in December – have eased liquidity fears and reignited optimism. With these inflows supporting aggressive expansion, has Applied Digital truly stabilized and set the stage for more gains? ## Debt-Fueled Push into AI Infrastructure Applied Digital remains heavily leveraged, carrying billions in debt to fund its AI-optimized data centers. Recent filings show current and long-term debt exceeding $2.6 billion against cash reserves around $1.9 billion, following high-cost issuances like $2.35 billion in 9.25% senior secured notes due 2030. The company continues adding debt to accelerate projects, including the new $50 million note for Polaris Forge 2. A key relief valve came when **Nvidia** ( [NVDA](https://moneymorning.com/stocks/nvda/)) invested an additional $2 billion in **CoreWeave** ( [CRWV](https://moneymorning.com/stocks/crwv/)), Applied Digital's anchor tenant. CoreWeave leases 400 megawatt at Applied Digiutal's Polaris Forge 1, generating billions in contracted revenue over 15-year terms. Nvidia's stake strengthens CoreWeave's balance sheet, lowering risks of delays or renegotiations and validating sustained demand for APLD's infrastructure. This partnership has helped offset earlier skepticism about the company's high leverage and reliance on flawless execution in a capital-intensive sector.  ## Have the Risks Evaporated? Not entirely. While financings and CoreWeave's bolstered position have calmed near-term concerns, Applied Digital's model still hinges on timely power delivery, tenant ramp-ups, and steady AI spending. Elevated borrowing costs and sector-wide debt worries persist – if hyperscaler capex slows, cash flows could strain debt servicing. Broader doubts about AI's long-term profitability add another layer of uncertainty. Moreover, customer concentration remains a major vulnerability. The bulk of APLD's contracted revenue – approximately $11 billion over 15 years – ties to CoreWeave at Polaris Forge 1, though the recent $5 billion hyperscaler lease at Polaris Forge 2 diversifies it somewhat but doesn't eliminate reliance on a few key tenants. If CoreWeave faces challenges given its heavy debt and unprofitability, payment disruptions could cascade, amplifying execution risks in a capital-intensive buildout where delays or cost overruns are costly. ## Bottom Line Applied Digital is still highly leveraged, funding ambitious AI growth through debt rather than abundant cash flow. As long as AI infrastructure demand expands, the company should grow its way toward stability, with projects like Polaris Forge 2 driving revenue ramps in 2026-2027. But that path introduces real risk: a slowdown in AI adoption could expose the balance sheet. Sustainability and profitability concerns around AI persist, and excessive debt to chase it warrants caution. APLD plunged 34% over the last week or so as fears of the "SaaS-pocalypse" shook the market, reminding investors of the volatility inherent in the stock. This isn't for investors time to be aggressive buyers. Applied Digital still needs to execute on its plans, and while the upward momentum appears ready to continue, even the slightest hiccup could send shares lower just as quickly as they rose. **Beat the market, without relying on brokers or biased institutions.** Email(Required) Comments This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. You can unsubscribe at any time and we encourage you to read more about our [Privacy Policy](https://moneymorning.com/privacy/). ## One moment, please: Processing your submission ###### More Trending Stories from Money Morning - [Anthropic Mauls CrowdStrike Again. Here's Why the Cybersecurity Stock Is a Buy](https://moneymorning.com/2026/02/25/anthropic-mauls-crowdstrike-again-heres-why-the-cybersecurity-stock-is-a-buy/) - [IonQ's Quantum Defense Breakthrough: Can a $151B SHIELD Win Ignite a Surge?](https://moneymorning.com/2026/02/25/ionqs-quantum-defense-breakthrough-can-a-151b-shield-win-ignite-a-surge/) - [Is Novo Nordisk's Brutal Sell-Off Really a Buying Opportunity?](https://moneymorning.com/2026/02/25/is-novo-nordisks-brutal-sell-off-really-a-buying-opportunity/) - [Nvidia's Deal With Meta Is Ringing Alarm Bells at Intel and AMD](https://moneymorning.com/2026/02/23/nvidias-deal-with-meta-is-ringing-alarm-bells-at-intel-and-amd/) - [Is This the Cheapest Stock In All the AI Universe?](https://moneymorning.com/2026/02/23/is-this-the-cheapest-stock-in-all-the-ai-universe/) Share it: ### Popular Articles ###### [IonQ's Quantum Defense Breakthrough: Can a $151B SHIELD Win Ignite a Surge?](https://moneymorning.com/2026/02/25/ionqs-quantum-defense-breakthrough-can-a-151b-shield-win-ignite-a-surge/) February 25, 2026 ###### [Is Novo Nordisk's Brutal Sell-Off Really a Buying Opportunity?](https://moneymorning.com/2026/02/25/is-novo-nordisks-brutal-sell-off-really-a-buying-opportunity/) February 25, 2026 ###### [Is This the Cheapest Stock In All the AI Universe?](https://moneymorning.com/2026/02/23/is-this-the-cheapest-stock-in-all-the-ai-universe/) February 23, 2026 ###### [Amazon Takes the Revenue Throne as Walmart Sales Jump Can't Keep Pace](https://moneymorning.com/2026/02/23/amazon-takes-the-revenue-throne-as-walmart-sales-jump-cant-keep-pace/) February 23, 2026 Notifications reCAPTCHA Recaptcha requires verification. [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/) protected by **reCAPTCHA** [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/)