New York, January 27, 2026, 18:54 EST — After-hours update.
Applied Digital Corp shares surged 14.2% to $41.35 in after-hours trading Tuesday, swinging between $36.51 and $42.07 on about 47.4 million shares. The jump sparked renewed interest in AI data center suppliers, driven by Nvidia’s $2 billion stake in cloud firm CoreWeave.
The jump is significant because Applied Digital works in a sector where sentiment flips fast. The company builds and leases data center capacity requiring massive power, and its stock often swings depending on whether clients can secure financing and utilize those megawatts.
That question remains front and center. Investors are keen to pour money into anything tied to AI infrastructure, but they’re quick to slam deals that look overpriced, struggle to grow, or depend too heavily on one client.
Nvidia and CoreWeave revealed Monday that Nvidia has invested $2 billion in CoreWeave, purchasing shares at $87.20 apiece. This injection fuels their shared plan to build more than 5 gigawatts of “AI factories” — huge data centers tailored for AI processing — by 2030. “Together, we’re racing to meet extraordinary demand for NVIDIA AI factories,” Nvidia CEO Jensen Huang said. NVIDIA Newsroom
CoreWeave shares jumped again Tuesday, drawing renewed attention from Wall Street. D.A. Davidson bumped its rating to “Buy” and lifted the price target to $100. Deutsche Bank set an even higher goal at $140, according to Barron’s. Barron’s
Applied Digital landed a direct link to CoreWeave’s expansion with two 15-year leases. The company expects these agreements to generate about $7 billion in revenue over the lease period, Reuters reported in 2025.
Applied Digital’s latest earnings report this month showed leases for 600 megawatts split between two North Dakota locations. CoreWeave holds contracts for 400 MW, while a U.S. investment-grade hyperscaler covers the remaining 200 MW. The company pegged “prospective lease revenue” — future income from these deals not yet recognized — at about $16 billion. CEO Wes Cummins flagged a “meaningful” rise in inbound demand, with “advanced discussions” in progress with another investment-grade hyperscaler. As of Nov. 30, Applied Digital had $2.3 billion in cash and restricted cash on hand, against $2.6 billion in debt. Applied Digital Corporation
Applied Digital revealed earlier this week that construction has begun on Delta Forge 1, an “AI Factory” campus planned to pull 430 megawatts of utility power at launch in a southern U.S. state, though the precise site is still under wraps. Applied Digital Corporation
But the situation cuts both ways. These projects require hefty capital outlays, depend on timely coordination of land and power, and hinge on a small set of customers who are spending aggressively right now—though financing conditions can turn quickly.
Traders will watch if Tuesday’s momentum holds into Wednesday’s open, as well as any updates from the company on new lease signings or buildout timelines. Applied Digital is scheduled to report earnings around April 13, according to Zacks.
