New York, Jan 26, 2026, 19:46 EST — After-hours
Applied Digital Corporation shares ended Monday roughly 4% lower, closing at $36.18. The Nasdaq-listed stock swung between $41.59 and $35.73 during a volatile session, with around 48 million shares changing hands.
The shift highlighted just how fast sentiment can flip in one of the market’s more volatile plays on the AI data-center buildout. Applied Digital attracted traders eager for a piece of the high-stakes demand for power and server space, but without holding the chips themselves.
The focus has shifted from hype to execution: securing land, permits, grid connections, and long-term customer contracts. Slip-ups on these fundamentals risk pushing back schedules, driving up financing costs, and reducing the value investors assign to “megawatts” in the pipeline.
A weekend story zeroed in on this. The Register reported CEO Wes Cummins has requested local officials to sign non-disclosure agreements (NDAs) — which limit what can be revealed before a project launch — arguing they help prevent insider trading. He said, “When we do NDAs, it’s … about trading in our public shares.” But Public Citizen campaign director Deanna Noel pushed back, insisting, “The public shouldn’t be expected to pay the price.” (The Register)
Applied Digital announced last week it has broken ground on Delta Forge 1, a 430-megawatt AI data-center campus planned somewhere in the southern U.S., though it hasn’t revealed the exact location. The project aims to deliver up to 300 MW of “critical IT load” — that’s the power supplied directly to computing equipment. It will kick off with two 150-MW facilities spread across more than 500 acres, with operations expected to begin by mid-2027. Cummins, commenting in the release, noted that “AI Factories succeed or fail” based on how well they integrate “power, cooling and operations.” The company is also in talks with a potential “hyperscale” client, described as a large cloud provider, for the site. (Applied Digital Corporation)
Applied Digital’s latest quarterly report showed fiscal second-quarter revenue soaring to $126.6 million, a 250% jump from the same period last year. The company posted a net loss of $31.2 million attributable to common stockholders. Cash, cash equivalents, and restricted cash totaled around $2.3 billion at quarter’s end. Meanwhile, debt stood at $2.6 billion, boosted by a $2.35 billion senior secured notes offering completed via a special-purpose subsidiary. (SEC)
Monday’s intraday whipsaw highlighted just how fragile patience is when the focus is squarely on what deals get signed, constructed, and powered next. Traders remain glued to headlines, hunting for any sign of a tenant commitment.
There’s a downside risk as well. Resistance from residents or lawmakers can drag out approvals, and the gap between being “in talks” and having signed contracts can force builders to shoulder costs while the market reevaluates the growth narrative.
Applied Digital’s investor calendar lists no upcoming events, pushing investors to rely on filings, press releases, and any customer news for the next solid update. (Applied Digital Corporation)
The next key event will be the company’s promised update on the Delta Forge 1 site in February. Investors will be watching closely for any indication that talks with a hyperscale customer are moving toward a signed lease.
