Applied Digital: AI Bubble Fears, Durable Demand, And Financing Risks

15Y take-or-pay leases with Tier 1 hyperscalers and strategic data center locations in friendly states underpin APLD's resilient prospects and reduced political risks. Robust expansion plans—scaling to 1,410 MW by 2028 and 4 GW by 2030—are supported by durable AI compute demand, though intermediate-term financing risks persist. Given the overly done selloff, the stock is cheap at FY2029 EV/Sales of 3.44x, with the high growth cadence well balancing the priced-in AI doom/gloom pessimism.