Applied Digital stock is up +18% in the last 48 hours, as it officially transitions from "crypto miner" to "AI backbone."
Here is the breakdown of why the market is repricing the stock right now:
✅ Earnings Smash: Revenue for fiscal Q2 2026 hit $126.6M—a 250% YoY increase—crushing Wall Street’s $89M estimate.
✅ The "AI Factory": Its Polaris Forge 1 campus is now fully energized and delivering 100 MW to major AI cloud provider CoreWeave.
✅ Hyperscaler Deals: The company recently signed a $5 billion, 15-year lease with a major U.S. hyperscaler. It’s also in advanced talks for an additional 900 MW of capacity.
✅ The Short Squeeze: With short interest previously sitting at ~27%, the massive revenue beat triggered a cascade of short covering, fueling the vertical move to near 52-week highs ($37.68).
✅ Strategic Spin-off: Investors are cheering the news that APLD will spin out its cloud compute segment into a new entity called ChronoScale.
The bottom line: Applied Digital isn't just building data centers anymore; it’s securing a $16B+ revenue backlog at the heart of the AI boom.
