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# Applied Digital: Building A Starter Position On This High Growth Play (Archive)
- URL: https://www.huntingalphas.com/applied-digital-building-a-starter-position-on-this-high-growth-play-archive/
- Published: 2025-01-06T15:34:00.000Z
- Updated: 2026-02-28T08:43:10.000Z
- Description: Building a high-growth, capital-intensive hyperscaler data center platform.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, APLD, Tech

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- Applied Digital is transitioning from operating data centers for crypto mining customers to building and operating data centers for larger hyperscaler companies.
- There is significant growth potential ahead as they are close to signing a 100MW lease deal with a hyperscaler and seeing high interest for an additional 300MW of capacity.
- The \~$880 million annual revenue potential if the 400MW of capacity gets leased out is far from being priced in by consensus revenue estimates.
- Revenue and EBIT delivery is starting to beat consensus expectations. Recent fund raises have bolstered the balance sheet and indicate positive investor sentiment.
- Premium valuations and delays in lease signings are key risks, which is why despite bullish technicals, I am inclined to start with 20% of my intended position size, with plans of adding 20% for every 100MW of capacity lease finalized.

Read the full article [here](https://seekingalpha.com/article/4747880-applied-digital-stock-building-starter-position-high-growth-play?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*