UBS initiates Applied Digital at Buy with $38 price target, citing AI infrastructure momentum

UBS analyst John Hodulik has initiated coverage of Applied Digital Corporation (NASDAQ: APLD) with a Buy rating and a $38 price target, adding another bullish voice to a growing chorus of Wall Street support for the AI infrastructure play. The initiation places UBS on the conservative end of the analyst spectrum. The broader consensus among roughly 15 to 20 covering firms skews toward Moderate Buy or Strong Buy, with average price targets venturing above $60, well north of Hodulik’s figure. Revenue growth that demands a double take Applied Digital’s recent financial results explain why analysts keep lining up. The company posted fourth-quarter fiscal year 2026 revenue of $258.7 million, a 407% increase compared to the same period a year earlier. For the full fiscal year 2026, revenue hit $611.3 million. That represents a 167% jump from the prior year. Applied Digital builds and operates data center campuses optimized for high-performance computing and AI workloads. Its business model revolves around long-term colocation and hosting leases, including 15-year take-or-pay agreements with major technology providers, meaning clients commit to paying whether or not they fully utilize the...