New York, Jan 9, 2026, 16:56 EST — After-hours
- Applied Digital shares jumped about 18% as trading spilled into the after-hours session
- Investors stayed focused on the company’s AI data-center buildout and hyperscaler lease pipeline
- Next catalyst: market attention shifts to lease signings and the next earnings date
Applied Digital Corporation shares were up about 18% at $37.68 in after-hours trading on Friday, extending a post-earnings rally as investors chased fresh signs of demand for the company’s AI-focused data centers. The stock traded between $31.83 and $38.30 during the session.
The move matters because Applied Digital sits in the middle of a crowded trade: companies that can secure power, build quickly and lock in long leases for high-performance computing (HPC) — big, energy-hungry data-center capacity used to run AI models. For traders, the question is less about this quarter and more about whether lease talks turn into signed contracts before the next round of capital spending. 1
Applied Digital said on Wednesday it posted fiscal second-quarter revenue of $126.6 million, beating Wall Street estimates of $88 million, helped by demand for large-scale AI infrastructure, according to LSEG data cited by Reuters. Shares rose about 7% in extended trading after the results. 1
In its earnings release, the company pointed to progress at its Polaris Forge sites in North Dakota and highlighted what it called advanced discussions with another investment-grade “hyperscaler” — industry shorthand for a large cloud company — across multiple regions. “Inbound demand has increased meaningfully,” chairman and CEO Wes Cummins said. 2
Applied Digital also detailed recently signed leases spanning 600 megawatts (MW) of contracted capacity, including 400 MW tied to AI cloud customer CoreWeave, and a separate 200 MW lease at its under-construction Polaris Forge 2 campus. It said that 200 MW deal is expected to generate about $5 billion of revenue over the term, with phased delivery beginning in 2026. 2
A quarterly filing dated Jan. 8 showed the company had $1.91 billion in cash and cash equivalents and $205 million in restricted cash as of Nov. 30, alongside $2.59 billion of long-term debt. The same filing showed total revenue of $126.6 million for the quarter and a net loss attributable to common stockholders of $19.1 million, reflecting income from discontinued operations. 3
Analyst moves added fuel. Stocktwits cited TheFly as saying B. Riley lifted its price target to $53 from $47 while keeping a “buy” rating, while Barron’s reported Needham analyst John Todaro reiterated a buy rating and a $41 target after the quarter. 4
The risk case hasn’t gone away. Applied Digital is still loss-making on a GAAP basis and its buildout depends on financing and construction timelines; any slip in lease negotiations, power delivery or customer demand could hit the stock fast in a trade that has turned crowded. 3
Investors next watch for updates on additional hyperscaler lease signings and the timing of capacity deliveries in 2026. Zacks estimates the company’s next earnings release is expected around April 13. 5
