NEW YORK, Jan 10, 2026, 07:00 EST — Market closed
- Shares jumped nearly 18% on Friday following the company’s update on fresh lease deals and financing for its AI-focused data centers.
- Investors are sizing up how quickly Applied Digital can convert its “megawatts under contract” into actual cash flow.
- Keep an eye on next week’s U.S. inflation figures and any updates on follow-on contracts.
Applied Digital shares surged 18% on Friday, closing at $37.68 following news of the data-center builder’s new contract and financing update. With U.S. markets closed for the weekend, the stock is set to resume trading on Monday.
This shift is crucial as Wall Street zeroes in on AI infrastructure leaders, and long-term leases with major cloud clients often signal more reliable revenue streams. A “hyperscaler” refers to a massive cloud provider; in data centers, “MW” (megawatts) measures the power capacity ready for servers.
Applied Digital reported in its fiscal Q2 update that it now leases 600 MW across two North Dakota sites. That includes a 400-MW agreement with CoreWeave at Polaris Forge 1 and a roughly 15-year, 200-MW lease at Polaris Forge 2 tied to a U.S.-based investment-grade hyperscaler. CEO Wes Cummins noted “inbound demand has increased meaningfully.” The company is deep in talks with another investment-grade hyperscaler spanning multiple regions but cautioned there’s no guarantee those deals will close. Applied Digital also announced plans to spin off its cloud unit and merge it with EKSO Bionics, creating ChronoScale. Investors remain focused on whether these ongoing discussions will actually lead to signed contracts and construction starts. (Applied Digital Corporation)
Revenue jumped 250% to $126.6 million for the quarter ended Nov. 30, Applied Digital reported, though it posted a net loss attributable to common stockholders of $31.2 million. Adjusted EBITDA, which excludes certain non-operating items, came in at $20.2 million, according to the filing. The company ended the quarter with roughly $2.3 billion in cash and restricted cash, and it has $900 million drawn from a Macquarie Asset Management preferred equity facility—a layer of funding senior to common equity. CFO Saidal Mohmand described the “strong liquidity position” as providing “flexibility to complete construction.” (Applied Digital Corporation)
Analyst notes added fuel. B. Riley bumped its price target on Applied Digital from $47 to $53, maintaining a buy rating. The firm pointed to potential new hyperscaler deals and strides at Polaris Forge, TipRanks reported. (TipRanks)
Trading volume surged, with roughly 86 million shares swapping hands Friday—well above the stock’s recent average. The close nudged APLD close to its 52-week peak near $40.20. Over the last year, the shares have swung wildly, between $3.31 and $40.20, highlighting the volatility typical of high-beta infrastructure plays. (The Motley Fool)
Applied Digital’s investor calendar lists no events beyond this week’s earnings call. Monday’s session will revolve around whether the stock can maintain its recent gains and if investors receive clearer details on the schedule for new leases, funding, and power for more sites. (Applied Digital Corporation)
The downside scenario is clear: the company hinges on completing construction at Polaris Forge 1 and 2, securing leases with major clients, and maintaining access to financing. Its quarterly report also highlighted risks from power outages and swings in cryptoasset prices impacting its legacy hosting operations. (Applied Digital Corporation)
Next week’s mood for rate-sensitive growth stocks may hinge on macro data, starting with December’s U.S. consumer price index hitting Tuesday, Jan. 13 at 8:30 a.m. ET, then producer prices due Wednesday. Applied Digital shares resume trading Monday, with investors eager for follow-through and any hint those “advanced discussions” translate into signed megawatts. (Bls)
