New York, January 27, 2026, 19:45 EST — After-hours
- Applied Digital shares jumped roughly 14% in after-hours trading.
- Nvidia made the move after recently investing in CoreWeave, an important client of Applied Digital.
- Traders are turning their focus to Wednesday’s Fed decision for fresh direction.
Applied Digital Corporation (APLD) shares surged roughly 14.2%, closing at $41.35 in after-hours trading Tuesday. The jump extends a recent rally linked to Nvidia’s new investment in AI cloud company CoreWeave. During the session, the stock fluctuated between $36.51 and $42.07, with around 47.5 million shares traded. (Nasdaq)
This move is crucial because Applied Digital’s narrative is essentially a financing play in rugged gear. The company is developing high-density data centers tailored for high-performance computing (HPC) — the intense computing power needed for AI training and inference — and its largest projects rely on customers continuing to inject capital.
CoreWeave and Nvidia framed this week’s news as a continuation of their ongoing partnership, with Nvidia putting $2 billion into CoreWeave shares priced at $87.20 each. “AI is entering its next frontier and driving the largest infrastructure buildout in human history,” Nvidia CEO Jensen Huang said in a statement. (CoreWeave)
Applied Digital has been connected to CoreWeave for months through long-term leases at its Polaris Forge 1 campus in North Dakota. In August, Applied Digital revealed that CoreWeave’s leases there total 400 megawatts (MW)—a unit of electrical capacity—and that these agreements represent about $11 billion in expected contracted lease revenue. CEO Wes Cummins described the deal as one that “underpins our commitment to building the next generation of AI infrastructure.” (Applied Digital Corporation)
The Nvidia-CoreWeave deal reignited the “circular financing” debate dogging parts of the AI supply chain — where chipmakers and infrastructure firms back customers who then buy more of their gear. MarketWatch flagged those concerns despite the announcement’s goal to bolster CoreWeave’s financial position and advance its data-center expansion plans. (MarketWatch)
Applied Digital has relied heavily on structured project financing to push construction forward. In its Jan. 7 earnings release, the company reported that CoreWeave has 400 MW contracted at Polaris Forge 1. It also revealed a $900 million draw under a preferred equity deal with Macquarie Asset Management, alongside a $2.35 billion senior secured notes issuance. As of Nov. 30, Applied Digital held $2.3 billion in cash and restricted cash, with $2.6 billion in debt. “This strong liquidity position gives us flexibility to complete construction, bring assets online, and generate cash flow,” Saidal Mohmand noted in the release. (SEC)
That spike doesn’t wipe out the typical risks. Applied Digital still faces the challenge of delivering power-hungry buildings on schedule, maintaining access to financing, and steering clear of trouble from its customer concentration. The downside scenario? Delays, tighter credit conditions, or a tenant balking at the next bill.
Wednesday’s macro calendar isn’t offering much relief. The Federal Reserve’s January meeting is set for Jan. 27–28, with investors eager for clues on any changes to the rate trajectory—moves that could put high-multiple infrastructure stocks in the crosshairs. (Federal Reserve)
The next key event is the Fed’s decision at 2 p.m. Eastern on Jan. 28, with Chair Jerome Powell’s press conference set for 2:30 p.m. Traders will be watching to see if Applied Digital’s AI-driven rally can maintain momentum into the open, and whether the CoreWeave news develops into a tangible boost for Applied Digital’s contract pipeline. (CBS News)
