Applied Digital Corp. (NASDAQ:APLD) stock rose Monday, reflecting a strong performance as the broader market also shows positive momentum. The move comes as major indices like the S&P 500 and Nasdaq are up, indicating that APLD is moving with broader market trends.

The Catalyst

The stock is currently trading at $39.90, marking a daily change of 5.85%. This uptick aligns with a general bullish sentiment in the market, particularly within the technology sector, which is seeing gains of 0.69%.

In addition to the overall market strength, Applied Digital Corporation’s 12-month performance has been impressive, with shares increasing by 504.79%. This long-term growth reflects strong investor interest and confidence in the company’s business model.

Delta Forge 1: Scaling The AI Infrastructure

On Jan. 22, Applied Digital announced it had broken ground on Delta Forge 1, a 430-megawatt (MW) AI Factory campus located in the southern United States. According to the company, the facility is designed to support up to 300 MW of critical IT load, specifically engineered for the high-density cooling and power requirements of hyperscale AI workloads.

Technical Analysis

The stock is trading 25.1% above its 20-day simple moving average (SMA) and 42.2% above its 100-day SMA, demonstrating robust short-term and long-term strength. Shares are currently positioned closer to their 52-week highs than lows, indicating a strong bullish trend.

The RSI is at 63.32, which is considered neutral, while the MACD is above its signal line, indicating bullish momentum. This combination suggests that while the stock is not overbought, there is still positive momentum driving the price higher.

The combination of neutral RSI and bullish MACD suggests mixed momentum, indicating that while the stock is performing well, traders should remain cautious of potential pullbacks.

Earnings & Analyst Outlook

Investors are looking ahead to the next earnings report on Apr. 13.

• EPS Estimate: Loss of 17 cents (Down from Loss of 8 cents YoY)
• Revenue Estimate: $77.08 million (Up from $52.92 million YoY)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $29.88. Recent analyst moves include:

• B. Riley Securities: Buy (Raises Target to $53.00) (Jan. 9)
• Roth Capital: Buy (Raises Target to $58.00) (Jan. 8)
• Needham: Buy (Maintains Target to $41.00) (Jan. 8)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Applied Digital, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Bullish (Score: 99.16) — Stock is outperforming the broader market.

The Verdict: Applied Digital’s Benzinga Edge signal reveals a strong momentum score, indicating that the stock is currently outperforming the market. Investors should consider this bullish trend while being mindful of potential volatility.

Price Action

APLD Price Action: Applied Digital shares were up 5.47% at $39.75 at the time of publication on Monday, according to Benzinga Pro data.

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