Needham reiterated its Buy rating and $83 price target for Applied Digital following fiscal fourth-quarter results.
The target suggests a potential upside of more than 214% from the July 27 closing price.
Quarterly revenue exceeded Wall Street expectations, primarily due to one-time fit-out services.
Adjusted earnings per share of -$0.39 missed consensus estimates.
Shares rose in premarket trading on the positive analyst outlook.
The high-performance computing division reported a 91% net operating income margin.
This figure exceeded company guidance and aligns lease economics with public peers.
Applied Digital is currently in advanced expansion talks with existing tenants.