New York, Jan 27, 2026, 13:17 EST — Regular session
- Shares of Applied Digital rose in afternoon trading, with investors zeroing in on AI data-center expansions and power capacity.
- Nvidia’s $2 billion stake in CoreWeave has put a spotlight on the funding and demand dynamics within AI infrastructure.
- Traders are eager for updates on Applied Digital’s latest campus and which major customer will sign the next lease.
Applied Digital Corp shares jumped roughly 15% Tuesday, hitting $41.49 by 1:17 p.m. EST. The stock swung between $36.51 and $41.90 during the session, with about 32 million shares changing hands.
This shift is significant since the market has shifted its view of “AI data centers” away from traditional real estate concerns and toward power capacity. Megawatts—the amount of electricity a facility can draw from the grid—now serve as a quick gauge for the potential scale of AI computing that can be hosted and marketed.
Investors are also watching closely to see how far the vendor-financing cycle can stretch amid the AI buildout. When major players signal they’re still backing capacity, it often boosts smaller suppliers, even if no fresh deals have been announced that day.
Nvidia announced Monday a $2 billion investment in CoreWeave, buying shares at $87.20 each. The chipmaker also deepened its partnership to back CoreWeave’s plans for data-center expansion. (Investing)
CoreWeave’s stock jumped roughly 12% Tuesday. Nvidia’s shares climbed around 1.4% during the session.
Applied Digital is still riding a catalyst. On Jan. 22, the company announced it broke ground on “Delta Forge 1,” an “AI Factory” campus located in a southern U.S. state. The facility is set to initially handle 430 megawatts of utility power, with plans to expand further. “AI Factories succeed or fail based on how effectively power, cooling and operations are integrated,” CEO Wes Cummins said. (GlobeNewswire)
In its latest quarterly update on Jan. 7, the company reported that CoreWeave has 400 MW contracted at its Polaris Forge 1 campus, amounting to roughly $11 billion in potential lease revenue. A U.S.-based investment-grade hyperscaler is leasing 200 MW at Polaris Forge 2, with a value near $5 billion over the lease term. Applied Digital also disclosed it held about $2.3 billion in cash, cash equivalents, and restricted cash at period end, with most of its debt maturing only in 2030. (SEC)
The big question remains: how fast can the company turn new site announcements into signed leases and financed builds, without sacrificing too much on economics? Until that clarity emerges, the stock will bounce between deal hype and general AI market mood.
But the setup works both ways. These campuses demand heavy capital and hinge on tight schedules; any hiccup in power delivery, construction, or lease signing can swiftly alter the funding outlook — and the stock’s risk appetite.
Traders are diving into the volatility. TheFly spotted a surge in call activity and rising implied volatility in Applied Digital options Tuesday. Earnings are due April 9. (Tipranks)
