New York, Jan 26, 2026, 12:44 ET — Regular session
- Applied Digital shares rose about 1% to $38.05, recovering after a choppy session earlier.
- Focus remains on the company’s rollout of Delta Forge 1 “AI Factory” and its ongoing talks with hyperscalers
- Traders are waiting on the promised site disclosure set for February, as well as any signed customer leases that might come with it.
Applied Digital Corp (APLD) shares rose about 1% to $38.05 by midday Monday, swinging between $41.59 and $36.78 earlier in the session. This volatility highlights mounting investor focus on data-center firms tied to AI infrastructure.
Power has emerged as the key bottleneck for AI growth, making these shifts critical. Companies that secure electricity and commit to long-term leases can count on stable revenue. Yet, mistiming those moves usually triggers quick setbacks.
Applied Digital has become a leveraged bet on that trend. It leases capacity for “AI factories” — massive data centers built for heavy computing workloads — and its stock has moved sharply whenever new site announcements or client talks come out.
Last week, Applied Digital Corporation broke ground on Delta Forge 1, a 430-megawatt campus set for a southern U.S. location. The project’s goal is to convert utility power into “critical IT load,” the energy directly powering servers. “AI Factories succeed or fail based on how effectively power, cooling and operations are integrated,” said chairman and CEO Wes Cummins. 1
Applied Digital has yet to disclose the location of Delta Forge 1 or identify the client. Cummins told The Register the move aims to protect the host community from unwanted attention. “We’re not trying to hide anything,” he said, adding the location will be revealed in February. 2
Needham’s John Todaro maintained a buy rating and a $41 price target, pointing to solid execution and the growth potential from the company’s hyperscale pipeline, according to TipRanks. “Hyperscaler” here means the big cloud providers that snap up data-center capacity in huge amounts.
Applied Digital announced earlier this month it secured leases with AI cloud provider CoreWeave for 400 MW at Polaris Forge 1, along with a 200 MW agreement with an unnamed investment-grade hyperscaler at Polaris Forge 2. Together, these deals could generate about $16 billion in potential lease revenue. Cummins told investors the company is “in advanced discussions with another investment-grade hyperscaler,” but cautioned there’s “no assurance of future contracts.” 3
On Monday, trading volume shot above 32 million shares as the stock swung wildly near the open, then calmed later in the session.
The setup cuts both ways. Power hookups, permits, and local pushback can stall major campus projects. Meanwhile, Delta Forge 1 hasn’t locked in a tenant yet. Any contract or construction snag could hit a stock already valued on future expansions.
Investors are focused on the promised February update for the Delta Forge 1 site, eager for signs that “discussions” have turned into a signed lease. Traders will also watch for any financing details and project timeline updates in the company’s upcoming filings.
