Applied Digital Secures a $7.5 Billion Contract for Artificial Intelligence Infrastructure

2026-04-27 companies

New York, Monday, 27 April 2026.
Applied Digital’s market value hit $11.6 billion after securing a monumental $7.5 billion infrastructure contract, highlighting explosive corporate demand for computing power even after Nvidia exited its previous investment.

Locking in Hyperscaler Demand

On April 23, 2026, Applied Digital (NASDAQ: APLD) fundamentally altered its financial trajectory by signing a 15-year lease agreement for its Delta Forge 1 artificial intelligence campus [4][8]. The deal, struck with an unnamed U.S. investment-grade hyperscaler, secures approximately 300 megawatts of computing capacity and adds roughly $7.5 billion in contracted value to the company’s backlog [4][8]. This landmark agreement pushes the Dallas-based technology firm’s total contracted lease revenue past the $23 billion threshold [4][8]. In response to the news, shares of the data center operator rallied 12% on the day of the announcement [4].

The Nvidia Connection and Market Volatility

Despite recent commercial triumphs, Applied Digital’s relationship with semiconductor titan Nvidia (NASDAQ: NVDA) has been a source of market turbulence. In September 2024, Nvidia participated in a $160 million financing round to help Applied Digital build out its HPC data centers across the United States [3]. However, a subsequent 13F filing revealed that Nvidia completely liquidated its $177 million position—consisting of over 7.7 million shares—by December 31, 2025 [3].

Financial Hurdles and Infrastructure Execution

The transition from speculative construction to live, revenue-generating infrastructure requires immense capital, a reality reflected in Applied Digital’s recent financial disclosures. For the third quarter of fiscal year 2026, reported on April 8, the company posted an earnings per share (EPS) loss of $0.36, missing consensus estimates by $0.23 [7][8]. Revenue figures for the quarter have presented some conflicting data in financial filings; some reports cite $108.55 million, which exceeded analyst expectations of $78.47 million, while other analyses point to $126.6 million driven by the fully operational 100-megawatt Polaris Forge 1 facility [alert! ‘Sources provide conflicting Q3 revenue figures of $108.55M and $126.6M’] [4][7][8].

Institutional Backing and Future Outlook

Despite the high-leverage risks and a trailing price-to-earnings (P/E) ratio of -47.32, Wall Street remains largely optimistic about Applied Digital’s market position [1][8]. Institutional investors and hedge funds currently control 65.67% of the company’s stock, signaling strong institutional faith in the long-term AI infrastructure play [7][8]. Furthermore, several analyst firms have reiterated positive outlooks; in mid-April 2026, Needham & Company raised its price target for the stock to $48.00, maintaining a buy rating [8].

Sources

Artificial intelligence Applied Digital