What Happened?
Shares of digital infrastructure provider Applied Digital (NASDAQ:APLD) jumped 12.9% in the morning session after the stock's positive momentum continued as it reported impressive second-quarter growth metrics that significantly beat Wall Street expectations.
The company's revenue nearly doubled to $126.6 million, largely driven by its high-performance computing (HPC) hosting business. A key factor was the full energization of the first building at its Polaris Forge 1 campus, which generated $85 million in revenue from a major artificial intelligence client. Furthermore, Applied Digital's adjusted net income was breakeven, which was much better than the loss analysts had predicted. The company also noted it was in advanced talks with a new major tenant. Following the strong results, analysts showed increased confidence, with Roth Capital raising its price target and Arete Research initiating coverage with a 'Buy' rating.
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What Is The Market Telling Us
Applied Digital’s shares are extremely volatile and have had 92 moves greater than 5% over the last year. But moves this big are rare even for Applied Digital and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 12.7% on the news that the company reported impressive fourth-quarter 2025 results that substantially beat Wall Street expectations. The company's revenue grew 98.2% year-over-year to $126.6 million, beating analyst estimates by 14.8%. The earnings performance was also a positive surprise, with Applied Digital reporting adjusted earnings per share of $0.00, whereas analysts had expected a loss of $0.21 per share. This strong performance was fueled by robust demand for its high-performance computing infrastructure, which is used for artificial intelligence and blockchain applications.
Applied Digital is up 29.7% since the beginning of the year, and at $36.45 per share, it is trading close to its 52-week high of $37.76 from October 2025. Investors who bought $1,000 worth of Applied Digital’s shares 5 years ago would now be looking at an investment worth $202,479.
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