Applied Digital Corp shares climbed in morning trading, rising about +7.6% as investors reacted to a cluster of corporate moves that materially expanded the company’s contracted revenue backlog and reinforced its positioning in the market for purpose-built AI data-center campuses.
The company disclosed a new long-term lease at Delta Forge 2, a purpose-built AI Factory campus in a southern U.S. state, with a U.S.-based investment-grade hyperscaler. The agreement covers 210 megawatts of critical IT load under a 15-year take-or-pay contract that includes renewal options and represents approximately $5.2 billion in base-term contracted revenue.
Applied Digital said the transaction increased its total contracted portfolio to around $36 billion across five campuses. Management noted that roughly 70% of contracted revenue is now backed by investment-grade hyperscalers, a shift the market interpreted as improving visibility into long-term demand for the company’s standardized AI campus model.
Alongside the leasing announcement, Applied Digital priced $1.59 billion of senior secured notes intended to fund the fourth building at Polaris Forge 1. The company also announced the formal close of a revolving credit facility arranged by Goldman Sachs for up to $550 million. The facility provides $350 million in committed capacity today, with an accordion feature that could add as much as $200 million in additional capacity.
Market analysts and investors responded to the package of news. Craig-Hallum raised its price target on the stock to $79 from $75, maintaining a positive view. A separate investor note published the same day emphasized the expanded contracted backlog as a pathway to notable upside in the equity, should Applied Digital successfully convert capacity into revenue.
The company’s June 2026 disclosure reiterated the new 15-year lease worth $5.2 billion and noted that the $36 billion in base-term contracted lease revenue could grow to $86 billion if all renewal options are exercised. That conditional figure hinges explicitly on lessees exercising available extensions rather than being guaranteed revenue under the current base terms.
Broad equity markets provided a constructive backdrop for the move. The S&P 500 traded up about +0.6%, the Dow Jones Industrial Average rose +0.9%, and the NASDAQ advanced +0.4% during the same session. Investors cited this market environment as supportive for high-growth names exposed to AI infrastructure demand.
From a financing and execution perspective, Applied Digital combined long-dated contractual commitments from a high-credit tenant with fresh capital markets activity to underpin near-term development of its AI campuses. The senior secured notes and the revolver increase available funding specifically aimed at building out additional capacity while preserving runway for continued campus replication across geographies.
Investors have focused on the company’s franchise model of replicating standardized AI campuses as a potential competitive advantage. However, market commentary also underscored that the ultimate valuation accretion depends on execution - namely, turning contracted megawatts into recognized revenue and realizing the benefits of scale across multiple campuses.
Applied Digital’s stock reaction reflects the convergence of a landmark leasing deal, substantial project financing, and an analyst upgrade in a favorable market context. The company’s expanded contracted backlog and newly strengthened liquidity position were central to investor enthusiasm in morning trading.
Key details:
- New 15-year take-or-pay lease at Delta Forge 2 for 210 MW - approximately $5.2 billion in base-term contracted revenue.
- Total contracted portfolio reaches roughly $36 billion across five campuses, with about 70% backed by investment-grade hyperscalers.
- $1.59 billion in senior secured notes priced to fund Polaris Forge 1 building four; $550 million revolver closed with $350 million committed capacity and $200 million accordion option.
- Analyst action: Craig-Hallum raised price target to $79 from $75.