New York, Jan 10, 2026, 18:52 (ET) — Market closed
Applied Digital Corporation (Nasdaq: APLD) shares jumped roughly 18% to settle at $37.68 on Friday, after fluctuating between $31.83 and $38.30 throughout the day. Trading volume hit around 86.4 million shares.
The late-week surge has brought renewed focus on a high-profile market trend: firms ramping up power-hungry data centers and securing long-term leases with “hyperscalers” — major cloud providers — to handle AI workloads. Investors have zeroed in on signed megawatts and funding commitments as the key metrics.
This is crucial because these projects consume cash well before generating any returns. For smaller players, one contract announcement or financing news can shift the stock price more than quarterly earnings ever will.
Applied Digital posted fiscal second-quarter revenue of $126.6 million for the period ending Nov. 30, far surpassing analysts’ forecast of $88 million, according to LSEG data.
In a recent regulatory filing, the company labeled itself as a designer and operator of data centers and colocation facilities catering to AI, cloud, and blockchain workloads. Revenue soared 250% year-on-year, hitting $126.6 million. Adjusted EBITDA — a non-GAAP measure of profitability before interest, taxes, depreciation, and amortization — came in at $20.2 million. The firm also projects it will surpass a $1 billion net operating income (NOI) goal within five years.
CoreWeave currently has 400 megawatts (MW) under contract at its Polaris Forge 1 campus. It also inked a roughly 15-year lease for 200 MW of AI and high-performance computing (HPC) capacity at Polaris Forge 2 with a U.S.-based investment-grade hyperscaler, expected to generate about $5 billion in revenue. “We are also in advanced discussions with another investment-grade hyperscaler across multiple regions,” CEO Wes Cummins said. Applied Digital Corporation
The company wrapped up a $2.35 billion private placement of 9.25% senior secured notes due 2030, priced at 97% of par. It has also tapped $900 million so far from a preferred equity facility with Macquarie Asset Management, which ranks ahead of common stock in the capital structure. CFO Saidal Mohmand said this liquidity “gives us flexibility to complete construction, bring assets online, and generate cash flow.” Applied Digital Corporation
Applied Digital has also revealed plans to spin off its cloud division and merge it with EKSO Bionics, creating ChronoScale—a platform focused on GPU-driven AI infrastructure. The deal is slated to wrap up in the first half of 2026, pending regulatory green lights and shareholder approval.
B. Riley bumped its price target for Applied Digital to $53 from $47, maintaining a Buy rating. The firm noted the company appears “poised to sign incremental hyperscaler agreements” as it advances initial energization at Polaris Forge 1 and development at Polaris Forge 2. TipRanks
Applied Digital operates in a crowded space. Crypto-hosting players like Core Scientific and Iris Energy have also pivoted toward AI and high-performance computing. Bigger data-center operators wrestle with identical constraints—power, land availability, and lengthy build schedules.
But the story can go the other way too. Leases often drag on for months, construction timelines run late, and high-coupon debt piles on the cost of any holdups. The stock tends to magnify that kind of uncertainty.
Applied Digital’s investor calendar lists no events ahead, leaving traders to look for new contract announcements or financing updates on Monday. The bigger picture could shift with the Federal Reserve’s Jan. 27-28 policy meeting looming. Before that, all eyes turn to Tuesday, Jan. 13, when the U.S. consumer price index for December drops at 8:30 a.m. ET.
