Wells Fargo initiated coverage on Applied Digital (NASDAQ: APLD) with an Overweight rating.
The bank set a price target of $50.00 for the AI data center operator. This target represents a potential upside of more than 100%. The stock previously traded at $24.39.
Applied Digital manages over 1.4 gigawatts of contracted capacity. This capacity spans five data center campuses. Major clients including Meta and Oracle have contracted over 70% of this total capacity.
Analysts labeled the company a top idea, citing its strong backlog and low regulatory risks. The stock price surged in pre-market trading following the report.