Applied Digital (NASDAQ: APLD) recently announced a significant expansion of its data center capabilities, leading to a notable increase in its stock price. The company’s shares rose approximately 16% following the release of its fiscal first-quarter results.
Strong Fiscal Performance
For the fiscal first quarter, Applied Digital reported a remarkable 84% increase in revenue year-over-year, reaching $64.2 million. This figure surpassed Wall Street’s expectations, which had estimated revenue at around $54.6 million.
- Revenue: $64.2 million
- Wall Street Estimate: $54.6 million
- Year-over-Year Growth: 84%
Despite this growth, the company reported a non-GAAP loss of $0.03 per share, which was an improvement over analysts’ forecasts. The adjusted EBITDA for this period was $537,000, indicating a strong operational performance even amid challenges.
Data Center Expansion Plans
Applied Digital has secured an additional 150-megawatt lease for its Polaris Forge 1 campus. This lease expands the company’s total contracted load to 400 megawatts in partnership with CoreWeave (CRVW).
- New Lease Capacity: 150 megawatts
- Total Capacity Under Contract: 400 megawatts
- Estimated Lease Revenue: $11 billion over 15 years
Strategic Infrastructure Investment
Wes Cummins, Chairman and CEO of Applied Digital, emphasized that this expansion highlights the company’s pivotal role in the digital infrastructure landscape. With an estimated $350 billion earmarked for hyperscale AI investments this year, Applied Digital aims to position itself as a key partner in this growth.
This expansion not only strengthens Applied Digital’s market presence but also reflects the increasing demand for robust data centers as companies accelerate their AI deployment strategies.
