New York, Jan 12, 2026, 11:32 AM EST — Regular session
- APLD shares climbed roughly 2.5% in late-morning trading, building on last week’s earnings-driven rally.
- Leasing progress and funding for the company’s North Dakota AI data center buildout are drawing investors’ attention.
- Traders await new contract updates and Tuesday’s U.S. CPI report.
Applied Digital Corporation shares climbed roughly 2.5% on Monday, buoyed by continued buying following last week’s quarterly report. The stock gained 93 cents to $38.61 in late morning trading, after fluctuating between $36.10 and $39.47 earlier in the session.
This shift is crucial as investors chase scarce data-center power and long-term deals linked to AI workloads. It’s been a hot spot in U.S. tech stocks this month, attracting a lot of quick capital.
Applied Digital finds itself smack in the middle of this. The company is still expanding, securing financing, and working to land customers in volume, which makes investors quick to respond to any news about contracts or construction progress.
Last week, the company posted fiscal second-quarter revenue that topped Wall Street forecasts, driven by strong demand for large-scale AI facilities. Revenue hit $126.6 million, surpassing analysts’ average estimate of $88 million, according to LSEG data. Shares jumped roughly 7% in after-hours trading following the announcement. (Reuters)
Applied Digital posted a net loss of $31.2 million, or 11 cents per share. Adjusted EBITDA, which excludes certain costs to reflect cash flow, came in at $20.2 million. The company secured leases with two hyperscalers across North Dakota campuses, totaling 600 megawatts of power capacity and roughly $16 billion in potential lease revenue before renewals. This includes a 15-year, 200 MW deal at Polaris Forge 2, expected to bring in about $5 billion. Applied Digital ended the quarter with approximately $2.3 billion in cash, cash equivalents, and restricted cash, following a $2.35 billion private notes offering and additional drawdowns from a Macquarie Asset Management preferred-equity facility. CEO Wes Cummins noted inbound demand has “increased meaningfully” but cautioned that ongoing discussions with another hyperscaler may not lead to contracts. The company also expects its ChronoScale cloud deal with EKSO Bionics to close in H1 2026. (Applied Digital Corporation)
Analyst chatter has picked up alongside the rally. B. Riley lifted its price target on Applied Digital to $53 from $47 while maintaining a buy rating, according to TheFly. (TipRanks)
Traders are now watching to see if the stock can maintain its gains through the close following volatile intraday swings and heavy volume in recent sessions. This is the type of stock that often gaps up only to surrender those gains just as fast.
But there’s a catch. If power projects get delayed, tenant build-outs drag on, or financing tightens, cash flow could take a hit. That would complicate the long-term lease calculations, particularly for a company that’s still posting GAAP losses.
Investors are also waiting on updates about a third hyperscaler contract and the phased delivery schedule at Polaris Forge 2, where initial capacity is expected in 2026.
Tuesday’s U.S. consumer price index report, set for 8:30 a.m. ET, is the next major catalyst. This data often moves Treasury yields sharply and tends to influence high-volatility growth stocks sensitive to rates, including APLD. (Bls)
