NEW YORK, Jan 9, 2026, 06:29 EST — Premarket
- Applied Digital shares rose about 8% in premarket trading
- Company reported a 250% jump in quarterly revenue and pointed to long-term AI data center leases
- Investors are watching for follow-on hyperscaler deals and execution on new capacity delivery
Applied Digital (APLD) shares climbed about 8% in premarket trading on Friday, extending gains after the data center operator posted sharply higher quarterly revenue and fresh details on long-term leasing tied to artificial intelligence demand. The stock was up $2.37 at $31.94.
The move lands as investors keep rotating in and out of “picks-and-shovels” AI plays — the firms that supply the electricity, racks and buildings behind the models. Applied Digital’s revenue beat Wall Street estimates as demand grows for large-scale sites that can handle AI workloads, Reuters reported. (Reuters)
In a filing, Applied Digital said revenue rose 250% to $126.6 million for its fiscal second quarter ended Nov. 30. It reported a net loss attributable to common stockholders of $31.2 million, and posted adjusted EBITDA — a profit measure that strips out interest, taxes and some non-cash costs — of $20.2 million. (Applied Digital Corporation)
Applied Digital also flagged progress and new leasing at its North Dakota campuses. It said it hit “ready-for-service” at Polaris Forge 1, delivering 100 megawatts of power capacity — a measure of how much electricity the site can draw — and outlined an about 15-year lease for 200 MW of AI and high-performance computing capacity at Polaris Forge 2 with an unnamed investment-grade “hyperscaler,” industry shorthand for a giant cloud buyer. The company said phased delivery begins in 2026 and the lease is expected to generate about $5 billion in revenue. (Applied Digital Corporation)
Funding is the other half of the story. The company disclosed $2.3 billion in cash, cash equivalents and restricted cash, alongside $2.6 billion in debt, and detailed a $2.35 billion private offering of senior secured notes due 2030 and additional draws under a preferred equity facility and other financing arrangements. (Applied Digital Corporation)
The broader backdrop is a rush to build compute. Elon Musk’s xAI said it plans to invest more than $20 billion in a Mississippi data center, one of several big-ticket announcements that underscore how capital-heavy the AI infrastructure buildout has become. (Reuters)
But the same math cuts both ways. Applied Digital still has to build, energize and deliver capacity on schedule, keep a tight grip on costs, and line up capital without diluting shareholders badly if the financing window narrows or customers slow their leasing decisions.
In the near term, traders will be gauging whether risk appetite holds up after Friday’s U.S. nonfarm payrolls report for December, due at 8:30 a.m. ET, a reading that can jolt rate-cut bets and momentum stocks in one hit. (Reuters)
