New York, Jan 26, 2026, 19:46 EST — After-hours
Shares of Applied Digital Corporation fell about 4% on Monday, closing at $36.18. The Nasdaq stock saw a wide range, fluctuating from $41.59 down to $35.73 amid heavy trading volume of roughly 48 million shares.
The move underscored how quickly sentiment can turn in one of the market’s more volatile bets on the AI data-center boom. Applied Digital drew in traders hungry for exposure to the surging demand for power and server capacity—without actually owning the underlying chips.
Attention has moved beyond hype to the nuts and bolts: locking down land, permits, grid hookups, and solid long-term contracts. Stumbling on these basics could delay timelines, hike financing expenses, and dent how investors value “megawatts” slated for development.
Over the weekend, The Register highlighted an issue involving CEO Wes Cummins, who has asked local officials to sign non-disclosure agreements (NDAs) ahead of a project launch. These NDAs limit what can be disclosed, aiming to curb insider trading. Cummins explained, “When we do NDAs, it’s … about trading in our public shares.” But Public Citizen campaign director Deanna Noel pushed back, saying, “The public shouldn’t be expected to pay the price.” 1
Applied Digital broke ground last week on Delta Forge 1, a massive 430-megawatt AI data-center campus planned somewhere in the southern U.S., though the exact site remains under wraps. The facility is designed to deliver up to 300 MW of “critical IT load”—the power fed directly to computing gear. The initial phase will include two 150-MW data centers spread over 500-plus acres, with operations slated to start by mid-2027. Cummins, quoted in the release, emphasized that “AI Factories succeed or fail” based on how well power, cooling, and operations are integrated. The company is also in talks with a potential “hyperscale” client, described as a large cloud provider, for the site. 2
Applied Digital reported fiscal second-quarter revenue of $126.6 million, soaring 250% compared to last year’s quarter. The company recorded a net loss of $31.2 million attributable to common stockholders. At quarter-end, cash, cash equivalents, and restricted cash stood near $2.3 billion. Debt rose to $2.6 billion, driven largely by a $2.35 billion senior secured notes offering through a special-purpose subsidiary. 3
Monday’s intraday swings showed just how thin patience runs when all eyes are on which deals are signed, built, and powered next. Traders stayed fixated on headlines, searching for any hint of a tenant commitment.
There’s a downside risk, too. Pushback from residents or lawmakers can stall approvals. And the stretch between “in talks” and signed contracts often leaves builders footing bills as the market reassesses growth prospects.
Applied Digital’s investor calendar shows no scheduled events ahead, leaving shareholders to depend on filings, press releases, and any customer announcements for meaningful updates. 4
The company is set to provide its next update on the Delta Forge 1 site in February. Investors are eager to see if negotiations with a hyperscale client are edging closer to a signed lease.
