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Applied Digital Kicks Off Delta Forge Build as Analysts Lift Targets on Hyperscaler Talks

Quarterly revenue up 250% underscores a pivot to long-term AI infrastructure leases.

Overview

  • Management said it is in advanced discussions with an investment‑grade hyperscaler for up to three sites totaling about 900 megawatts.
  • Roth reports construction has begun at Delta Forge 1 in the southern U.S., planned for an initial 430 MW, and expects a formal hyperscaler lease within months.
  • After the quarter, Northland raised its price target to $56, Craig‑Hallum to $40, and Roth reaffirmed Buy with a $58 target.
  • Q2 results showed $126.6 million in revenue, up 250% year over year, alongside a $31.2 million GAAP net loss and $20.2 million in adjusted EBITDA.
  • Seeking Alpha highlights a shift toward a hyperscale landlord model supported by roughly $16 billion in contracted lease revenue, while cautioning that valuation looks stretched near 32x forward EV/sales.