Applied Digital has expanded its contracted backlog to $31 billion with the Polaris Forge 3 lease, 67% of which is linked to investment-grade hyperscalers, potentially enabling cheaper project financing. The close timing between the Delta Forge 1 and Polaris Forge 3 leases suggests the same customer may soon lease the remaining 300 MW site, reflecting a trend of hyperscalers securing compute capacity for 2027-2028 to support upcoming Nvidia GPU architectures. With 1.7 GW of grid-connected sites and a strong equipment supply chain, Applied Digital is well-positioned to secure more leases through 2026. The analyst maintains a strong buy rating and raises the price target to $67, implying a 37% upside.
