Applied Digital Surges 17.97% on $3.11 Billion Trading Volume Ranks 21st in Market Activity as AI Infrastructure and Hyperscaler Leases Drive Momentum

Market Snapshot

Applied Digital (APLD) surged 17.97% on January 9, 2026, with a trading volume of $3.11 billion, ranking 21st in market activity. The stock’s sharp rise followed the company’s fiscal second-quarter revenue of $126.6 million—surpassing analyst estimates of $88 million—and updates on AI data center developments. The price climbed to $35.38–$36.69 intraday, extending a post-earnings rally driven by investor optimism over lease progress and funding milestones.

Key Drivers

Applied Digital’s stock performance was fueled by a combination of financial outperformance, strategic leasing announcements, and a major financing round. The company’s revenue nearly tripled year-over-year, driven by $85 million in tenant fit-out services at its Polaris Forge 1 campus, where CoreWeave’s 100 MW facility reached “ready-for-service” status. This milestone, coupled with a 15-year, 200 MW lease at Polaris Forge 2 for AI and high-performance computing, signaled strong demand for large-scale infrastructure. The lease with CoreWeave alone represents $11 billion in prospective revenue, while the second Polaris Forge lease could generate $5 billion over its term.

The company’s ability to secure long-term contracts with investment-grade hyperscalers amplified investor confidence. Management highlighted “advanced discussions” with another hyperscaler for 900 MW of capacity across three sites, potentially adding $16 billion in lease revenue. These developments align with a broader industry trend of hyperscalers seeking geographies with abundant energy and cooling efficiency, such as North Dakota. CEO Wes Cummins emphasized the region’s advantages, including its climate and energy infrastructure, as a strategic differentiator.

A $2.35 billion private offering of senior secured notes and additional draws under a Macquarie-backed preferred equity facility further solidified Applied Digital’s liquidity position. The financing, combined with $900 million already drawn from Macquarie, provided flexibility to complete construction and manage debt. CFO Saidal Mohmand noted that the liquidity would enable phased project execution, mitigating risks from construction delays or shifting market conditions. However, the company reported a $31.2 million net loss, underscoring the capital-intensive nature of its expansion.

Strategic repositioning also contributed to the stock’s momentum. Applied Digital announced plans to spin off its cloud unit and merge it with EKSO Bionics to form ChronoScale, a GPU-focused cloud platform. The deal, expected to close in mid-2026, positions the company to transition toward a data-center REIT structure, which could enhance shareholder returns through income distribution. Analysts, including Needham’s John Todaro and Roth’s Darren Aftahi, reiterated Buy ratings, citing the pipeline of hyperscaler leases and favorable contract terms.

Despite the positive momentum, execution risks remain. The company’s reliance on construction timelines, power delivery, and lease signings leaves it vulnerable to delays or cost overruns. For instance, any slip in Polaris Forge 2’s development could strain cash flow, while the shift in rate policy (e.g., U.S. CPI and Federal Reserve decisions) could impact growth valuations. Nevertheless, the immediate focus for investors is on translating signed power commitments into operational capacity, a challenge the company has addressed with its North Dakota footprint and Macquarie partnership.

The market’s reaction reflects a broader shift toward “picks-and-shovels” plays in the AI infrastructure boom. As hyperscalers like CoreWeave and Musk’s xAI announce multi-billion-dollar projects, Applied Digital’s ability to secure and execute on high-margin leases becomes critical. With a clear path to exceed its $1 billion net operating income target within five years, the stock’s trajectory hinges on maintaining its first-mover advantage in a rapidly consolidating market.