Got $1,000? 1 Tech Stock to Buy and Hold for Decades.
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By John Ballard – Dec 12, 2025 at 8:25AMKey PointsApplied Digital is poised to benefit from the growing demand for additional data center capacity.The stock is trading at just 10 times projected operating profit over the next five years.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: APLDApplied DigitalMarket Cap$8.6BToday's Changeangle-down(-0.66%) $0.20Current Price$30.79Price as of December 11, 2025 at 3:58 PM ETThis data center company is positioned for explosive growth.A few years ago, there were not enough chips for companies investing in artificial intelligence (AI). Today, chips are no longer a problem. The main bottleneck is securing access to electricity for new data centers. This is a significant opportunity for data center builders like Applied Digital (APLD 0.66%). The stock has climbed more than 300% in 2025. If you have extra cash you can afford to commit to a long-term investing strategy, this stock offers substantial upside. Image source: Getty Images. Why buy Applied Digital stock The latest research from Morgan Stanley projects a 47-gigawatt shortfall in available electricity for data centers over the next several years. Applied Digital has two data center sites in North Dakota, with other projects planned for the long term. It currently has 286 megawatts operational in North Dakota, with a total of 4 gigawatts in its active development pipeline. ExpandNASDAQ: APLDApplied DigitalToday's Change(-0.66%) $-0.20Current Price$30.79Key Data PointsMarket Cap$9BDay's Range$28.92 - $30.8452wk Range$3.31 - $40.20Volume1.6KAvg Vol30MGross Margin14.46%Dividend YieldN/A Applied Digital is only addressing a fraction of the projected energy shortfall. However, the high demand creates tremendous profit potential for the business.Advertisement The company reported an 84% year-over-year increase in revenue in the recent quarter. It has already signed a multibillion-dollar deal with CoreWeave but has been in active talks with other hyperscalers. Each megawatt of data center power is worth several million dollars. The deal with CoreWeave is expected to bring Applied Digital's annual operating profit to $500 million, with the potential to grow that to $1 billion in the coming years through additional deals. With the stock's market cap at just under $10 billion, which implies a conservative 10 times multiple on future operating profit, investors may be able to multiply their investments in this company over the next decade and beyond.About the AuthorJohn Ballard has been a contributing writer at The Motley Fool since 2016, covering consumer goods and technology stocks. He holds a bachelor’s degree in business administration with a focus in real estate finance from the University of Arkansas at Little Rock.TMFRazorbackRead NextDec 10, 2025 •By Manali Pradhan, CFACould Buying Applied Digital Today Set You Up for Life?Dec 7, 2025 •By John BallardWhat Is One of the Best Tech Stocks to Hold for the Next 10 Years?Dec 2, 2025 •By Rick OrfordPrediction: Applied Digital Could Soar 133% After Its Latest MilestoneDec 1, 2025 •By Lyle DalyThink It's Too Late to Buy Applied Digital Stock? Here's the 1 Reason Why There's Still Time.Nov 30, 2025 •By Harsh ChauhanHistory Says the Nasdaq Will Soar in 2026: The Best Stocks to Buy With $250 Before It DoesNov 14, 2025 •By Keith NoonanWhy Applied Digital Stock Is Surging Today