NEW YORK, January 3, 2026, 15:41 ET — Market closed
- Applied Digital shares climbed 14.6% on Friday, closing at $28.11.
- Investors are looking ahead to the company’s fiscal Q2 update on Jan. 7.
- A planned cloud-unit spin-out into ChronoScale remains a key talking point.
Shares of Applied Digital Corporation (APLD) jumped 14.6% on Friday to close at $28.11.
The rally tracked a broader rebound in risk appetite on Wall Street, where chipmakers led gains and the Philadelphia Semiconductor Index rose 4% on the first trading day of 2026. 1
The move puts extra weight on Applied Digital’s next quarterly update, with the company scheduled to host its fiscal second-quarter earnings call on Jan. 7 at 5 p.m. ET. 2
Last week, the Dallas-based company said it would spin out — separate into a new company — its cloud computing business, Applied Digital Cloud, and combine it with Ekso Bionics Holdings to form ChronoScale. Applied Digital said it expects to own about 97% of the combined company and aims to build a GPU (graphics processing unit) platform for artificial intelligence workloads in a tight-capacity market. “ChronoScale is intended to bring together a proven operating platform and a clear mandate: deliver accelerated compute at scale,” chairman and CEO Wes Cummins said. 3
A Form 8-K filing dated Dec. 29 said Applied Digital issued the announcement under Regulation FD, a disclosure rule designed to prevent companies from selectively sharing market-moving information. 4
Investors are weighing how the separation could reshape the company’s financial profile, with the remaining business centered on data center ownership and development while the cloud compute unit sits in a separate vehicle.
Analysts expect another sharp revenue jump when Applied Digital reports results for the quarter ended in November, with FactSet data cited by Investor’s Business Daily putting projected revenue at about $86.7 million, up 143% year on year. 5
Friday’s gain for Applied Digital outpaced a modest rise in the broader market, with the S&P 500 up 0.2% and the Nasdaq composite roughly flat, the Associated Press reported. 6
Other high-beta computing names also advanced. Core Scientific rose about 9.8% and Hut 8 gained 11.6%, while data-center landlords Digital Realty and Equinix were little changed.
Traders will watch next week for updates on customer demand, capacity buildouts and funding plans, along with any detail on how the ChronoScale structure may affect reported revenue and capital needs.
Before markets reopen on Monday, attention will turn to macro events that can move rate expectations, including the December jobs report due Jan. 9 and the consumer price index on Jan. 13. 7
For Applied Digital, positioning into the earnings date may hinge on whether the stock holds Friday’s level after a session driven in part by the broader AI and chipmaker rebound.
The stock finished Friday near the top of its $24.65-to-$28.44 range; the prior close around $24.52 is a nearby support level, while its 52-week high stands at $40.20, StockAnalysis.com data show. 8
