Applied Digital is emerging as a major beneficiary of the AI infrastructure boom, with strong long-term demand visibility and a focus on expanding its data center capacity. The company has secured significant funding and signed multi-billion-dollar lease agreements with hyperscalers like CoreWeave, which will generate substantial revenue over the next 15 years. Its contracted backlog exceeds $16 billion, with plans to scale capacity to over 1 gigawatt at its North Dakota campuses by 2028-2030. Despite trading at a high valuation of 39.5 times sales, the company's future cash flow potential and operational pipeline justify its premium. Applied Digital is working to shorten construction timelines from 24 to 12 months and has secured $5 billion in funding from institutional investors, reducing financing risks. Industry forecasts indicate a $350 billion annual investment in AI data centers in 2025, with a projected $6.7 trillion global need by 2030. The company’s stock has surged over 295% in 2025, tripling since announcing its deal with CoreWeave. While unprofitable currently, its revenue is expected to grow significantly, and it offers long-term upside for investors willing to overlook short-term volatility.