Applied Digital shares surged this week after the company reported fiscal second-quarter 2026 results that exceeded Wall Street expectations.
Applied Digital reported revenue growth of approximately 250% year over year, driven by increased demand for data center and AI-related infrastructure. Adjusted results showed earnings close to break-even on a non-GAAP basis, reflecting continued operating improvement compared with the prior year.
Investor attention remains centered on the company’s disclosure that it is in discussions with a major cloud hyperscaler regarding roughly 900 megawatts of potential data center capacity. While no agreement has been finalized, management indicated that these discussions could represent a significant long-term growth opportunity.
Following the earnings release, analysts from B. Riley and Roth Capital raised their price targets on the stock while maintaining Buy ratings. Shares closed near $37.70 on elevated trading volume after the results were released.
The company also reiterated its focus on expanding AI-oriented infrastructure and advancing contract negotiations, while acknowledging the capital requirements associated with large-scale data center development.
#Investor Takeaway
The stock’s recent gains reflect a positive market reaction to stronger quarterly results and improved revenue visibility.
#Market Impact
Applied Digital’s earnings beat and updated growth outlook contributed to increased investor interest, supported by favorable analyst commentary.
#What’s Next
Investors are expected to watch for updates on potential hyperscaler agreements, finalized contracts, and progress on AI infrastructure expansion initiatives.