So here’s a fun Friday story: while most of us were probably thinking about weekend plans, Applied Digital (NASDAQ: APLD) decided to absolutely lose its mind and rocket up 28% in a single day. And honestly? Good for them.
This AI data center company just dropped earnings that made Wall Street analysts do that thing where they frantically recalculate their spreadsheets and bump up price targets like they’re bidding at an auction.
The Numbers That Made Everyone Lose Their Minds
Let’s talk about what actually happened here, because the numbers are pretty wild:
- Revenue: $64.2 million (up 84% year-over-year) vs. estimates of $50 million. That’s not just beating expectations—that’s dunking on them.
- Net loss per share: 11 cents vs. estimates of 13 cents loss. Still losing money, but hey, losing less money than expected is basically winning in startup land.
But here’s the real kicker: this stock is now up a completely ridiculous 372% year-to-date. That’s the kind of return that makes your boring index fund look like it’s moving in slow motion.
Why Everyone’s Suddenly Obsessed
Applied Digital isn’t just running some random data centers—they’re building the digital real estate that AI companies are desperately fighting over. Think of them as the landlords in the hottest neighborhood in tech.
They just signed a massive lease deal with CoreWeave for 150 megawatts at their North Dakota campus. And get this—the total anticipated revenue from just this one campus? $11 billion. That’s “buy a small country” money.
CEO Wes Cummins dropped this gem: “We believe we are in a prime position to serve as the modern-day picks and shovels of the intelligence era.” Translation: while everyone else is digging for AI gold, they’re selling the shovels. Smart move.
The Wall Street Love Fest
After these earnings, analysts basically turned into Applied Digital cheerleaders:
- Roth Capital went completely wild and boosted their price target by $13 to $56 per share
- Needham raised theirs to $41
- Northland bumped it to $40
When multiple analysts are raising price targets on the same day, that’s usually a pretty good sign you’re onto something.
The Reality Check
Now, before you mortgage your house to buy APLD stock, let’s be real for a second. This company is still burning cash and building out infrastructure. They’re betting big on AI demand continuing to explode, which seems like a pretty safe bet, but still—it’s a bet.
That said, with hyperscalers expected to throw around $350 billion at AI deployment this year, Applied Digital is positioned to catch some serious spillover. They’re not just riding the AI wave—they’re building the surfboards.
Sometimes the best plays aren’t the flashy AI software companies everyone’s talking about. Sometimes it’s the boring infrastructure companies quietly building the foundation for the future. And judging by today’s 28% pop, the market is starting to figure that out.