Applied Blockchain rated Outperform amid data center growth

Citizens reaffirmed its Market Outperform rating and $40 target for Applied Blockchain, citing strong returns and data center growth, despite rapid cash burn and no new customer announcement. Revenue rose 104% to $264M.

Citizens has maintained its Market Outperform rating and $40.00 price target for Applied Blockchain Inc (NASDAQ:APLD), implying a 44% potential upside from the current share price of $27.79. Over the past year, the stock has delivered a remarkable 403% return. However, InvestingPro data highlights that the company is rapidly burning cash as it scales its operations. This rating follows Applied Blockchain’s release of its third-quarter fiscal 2026 financial results. Contrary to expectations, the company did not announce any new customers. Notably, Applied Blockchain reported breaking ground on DF-1, a facility with approximately 430 megawatts of gross capacity and 300 megawatts of critical IT load, with initial operations expected by mid-2027. Revenue surged 104% over the last twelve months to $264 million, and analysts expect continued sales growth. The company also disclosed that additional sites are being actively marketed, with over 1 gigawatt of potential capacity available for conversion through enhanced leased data center capacity.