New York, January 27, 2026, 18:54 EST — After-hours update.
Applied Digital Corp shares jumped 14.2% to $41.35 in after-hours trading Tuesday, after fluctuating between $36.51 and $42.07 on roughly 47.4 million shares. The surge came as investors refocused on AI data center suppliers following Nvidia’s $2 billion investment in cloud company CoreWeave. (MarketWatch)
The jump matters because Applied Digital operates in a market segment where sentiment can shift quickly. It builds and leases data center capacity that demands heavy power, and its stock tends to move based on whether customers can fund and fill those megawatts.
That question is very much alive today. Investors are eager to back anything linked to AI infrastructure, yet they’re quick to penalize deals that seem overvalued, slow to scale, or overly reliant on a single tenant.
Nvidia and CoreWeave announced Monday that Nvidia has pumped $2 billion into CoreWeave, buying shares at $87.20 each. The move ramps up their joint effort to create over 5 gigawatts of so-called “AI factories” — massive data centers designed for AI workloads — by 2030. “Together, we’re racing to meet extraordinary demand for NVIDIA AI factories,” said Nvidia CEO Jensen Huang. (NVIDIA Newsroom)
CoreWeave shares climbed once more on Tuesday, sparking fresh interest from Wall Street analysts. D.A. Davidson upgraded the stock to “Buy” and raised its price target to $100. At the same time, Deutsche Bank came out with a $140 target, as reported by Barron’s. (Barron’s)
Applied Digital secured a direct connection to CoreWeave’s expansion through two 15-year leases. The company projected these deals to bring in roughly $7 billion in revenue over the lease term, Reuters reported in 2025. (Reuters)
Applied Digital’s latest earnings update this month revealed leases covering 600 megawatts across two North Dakota sites. CoreWeave accounts for 400 MW under contract, while a U.S. investment-grade hyperscaler holds the remaining 200 MW. The company estimated “prospective lease revenue” — future revenue from these contracts, not yet booked — at roughly $16 billion. CEO Wes Cummins noted a “meaningful” uptick in inbound demand, with “advanced discussions” underway with an additional investment-grade hyperscaler. As of Nov. 30, Applied Digital reported $2.3 billion in cash and restricted cash, alongside $2.6 billion in debt. (Applied Digital Corporation)
Applied Digital announced earlier this week that it has started construction on Delta Forge 1, an “AI Factory” campus set to initially draw 430 megawatts of utility power in a southern U.S. state, though the exact location remains undisclosed. (Applied Digital Corporation)
But the situation is double-edged. These projects demand heavy capital investment, rely on land and power aligning on time, and count on a narrow group of customers who are currently spending heavily—though funding conditions can shift fast.
Traders will be keeping an eye on whether Tuesday’s momentum carries over into Wednesday’s open, along with any updates from the company on new lease signings or buildout schedules. Applied Digital is set to report earnings next on or around April 13, per Zacks. (Zacks)
