Applied Digital

APLD

Market cap $9.89B

I turned bullish on Applied Digital Corporation (APLD). Q2 FY26 was a blowout quarter: $126.6M, up 250% yoy, driven largely by HPC hosting growth as the business pivots away from crypto hosting. Management is finally spinning off the money-losing cloud services segment (ChronoScale with EKSO), removing a major overhang.

Applied Digital (APLD 2.97%) is making an aggressive push into AI-optimized data-center infrastructure, backed by a massive long-term contract pipeline and the high-stakes ChronoScale spin-off. This breakdown explores the bullish upside potential, execution risks, and why analysts still see meaningful room for gains ahead.

Applied Digital's latest quarterly report has added more fuel to the stock's red-hot rally. Investors may now be wondering if this data center specialist has room for more upside.

APLD invests in advanced cooling and dedicated power to ease AI data center constraints as hosting revenues rise and capacity ramps.

APLD shares spike after Q2 revenues soar 250%, underscoring strong execution while leaving questions around valuation and losses.

Applied Digital Corporation delivered nearly 250% YoY revenue growth in Q2, driven by robust HPC hosting expansion, but remains unprofitable with negative EPS. Despite a strong $2.3 billion cash position, APLD faces high ongoing capex needs and will likely continue burning cash through FY2027. Significant equity dilution is inevitable as APLD must fund aggressive AI infrastructure buildout amid intense competition from larger peers.

Applied Digital jumped nearly 18% on January 9, 2026, closing at $37.68, following the announcement of a remarkable 250% year-over-year revenue growth in its fiscal Q2 earnings. This movement was marked by aggressive purchasing and considerable volume, indicating a substantial change in investor sentiment.

U.S. stocks settled higher on Friday, with the Dow Jones index gaining more than 200 points during the session. The S&P 500 also surged to fresh highs, recording a weekly gain, following the release of the jobs data.

AI hardware players are expected to have another great year. Cloud computing companies will continue to see demand outstrip supply.

Applied Digital is seeing major revenue growth as it undergoes a business transformation. News that it is close to announcing additional commitments helped send the stock higher.